Forex Trading News: Dollar Doldrums and Pound Problems
December 6, 2017 (Investorideas.com Newswire) As we are now quickly approaching the holiday season, many Forex traders are keen to know what awaits them in terms of short- and long-term positions in the coming weeks. Indeed, this year has already experienced its fair share of volatility and this trend does not show many signs of letting up. What do the experts have to say, what currencies should we keep an eye on and is there any light at the end of the fiscal tunnel? Addressing these questions will enable traders to make informed decisions when the time is right.
Theresa May is continuing to fight an uphill battle in terms of the Brexit negotiations. As she struggles to maintain her minority hold within parliament, concessions are being made. Another confounding factor is that Ireland has now insisted that it must have a direct say in regards to the progress of these fractured talks. It should therefore come as no surprise that the pound has been experiencing downward pressure during the past few weeks.
Most investors are hoping that Brussels and Britain will be able to hammer out a deal that is amenable to both parties and yet, this reality seems far off. Traders are now keeping a close eye on any news emerging from CMC Markets, as even short-term positive developments could very well signal a rally in the price of the pound in relation to its European counterpart.
The Continuing Slide of the Dollar
The United Kingdom is far from the only major economic powerhouse which has been experiencing a bearish outlook in recent times. We need to look no further than the raucous associated with the Trump administration to put this statement into perspective. The dollar has experienced turbulent times since Donald Trump came to power and this this trend shows no signs of slowing down. If anything, we could soon see this negative outlook reach far into Q1 2018. This is due in no small part to the recent accusations against former national security advisor Michael Flynn. Now that he has formally pleaded guilty to a number of charges, one has to wonder what damage this action will do to the already struggling Trump team.
As a reaction to this recent move, the dollar has once again lost any tenuous ground that it previously gained. However, some analysts are concerned that this may represent only the tip of the political iceberg. If it is possible to directly tie the Trump administration to the purported Russian meddling that was said to have occurred during the 2016 election campaign, the real trouble could begin. This would obviously be devastating news for the dollar. However, could investors capitalise upon such a reversal?
Time to Buy?
The global markets have recently taken a much more risk-averse stance, and for good reason. However, one must wonder whether or not magnates such as Warren Buffett are beginning to see buying opportunities on the horizon. The fact of the matter is that both the British pound and the American dollar will have to stabilise at some point and what goes down will once again come back up. Therefore, we could very well see the bulls enter back into the marketplace immediately after the holidays. However, it is not likely that many changes will take place over the next few weeks. Either way, the best way to keep abreast of any late-breaking Forex news is to utilise the live feeds offered by CMC Markets. Opportunities always exist for those who position themselves accordingly.
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