The most popular currency pairs are the euro and the pound. Since it is a pair of pounds, it is very dynamic and you may have the image of a speculative currency pair, but this combination tends to be rather in the range. Therefore, it is more suitable for scalping and day trading than trend following. Strategies that take a large price range are difficult to fit. It will be a tough battle for trend followers.
Recommended for intermediate to advanced Forex. Forex beginners are encouraged to first learn the movement habits of this currency pair. Trend-following strategies tend not to fit in because they tend to be in the range.
Recommended trading time
Trading becomes active only when the London market opens. It will be actively traded until the end of the New York market. We do not recommend trading as Asian time is very quiet and lull.
Recommended trading style
It is suitable for scalping and day trading, but it is difficult for trend following. It is difficult to get a large price range with one shot because it is easy to get into the range.
Economic indicators to watch out for
The UK economic indicators are influential and are at a level that greatly moves the market, so let’s take a closer look. The pound is very sensitive and it is important to note that the pound moves significantly around the policy interest rate, GDP and unemployment rate in the UK, and the movement is also extremely troublesome because it fluctuates extremely unlike the euro and the dollar. is.
There are so many euro indicators, as well as economic indicators such as Germany, France and Italy. There are a lot of indicators, but if you keep interest rate policy, GDP, and unemployment rate low, it will be okay for the time being.
When the euro moves
The euro is the common currency of the European Union. Therefore, there are many things to see because they are influenced by many European nations. Of particular note is Germany. It has the greatest power and influence in the European Union, so it has a huge impact on the market.
When the pound moves
The pound is sensitive to British politics and interest rate policies. Knowing the nature of the pound’s extreme price movements rather than economic indicators or politics may be the first step. That is the biggest point to win in this currency pair.