Euro is gaining a little ground today, heading higher thanks to some improved data, and better risk appetite. However, the euro’s new found gains are likely to be short lived, since the 18-nation currency remains on shaky ground. Better economic data is beginning to help the euro a little bit in currency trading on the FX market. However, the small gains made today aren’t expected to last. Many predict more […]
Read moreThe Taiwan dollar fell today on concerns that foreign investors will abandon local assets because of expectations of higher interest rates in the United States. Other currencies of emerging markets were also under pressure though some of them showed resilience. Prospects for monetary tightening from the Federal Reserve made the trading environment unfavorable for riskier currencies. While some of them, including the Indian rupee, were able to resist the pressure, the Taiwan […]
Read moreThe Indian rupee declined today on concerns that the planned interest rate hike from the Federal Reserve will deter investors from emerging markets. Yet the currency was able to recover as of now, suggesting that volatility on the market is rising after the Fed meeting and ahead of the holiday period. The outlook for monetary tightening from the Fed made the US dollar stronger. This, in turn, will likely reduce capital inflows from overseas […]
Read moreAccording to one of my old polls, the majority of active FX traders prefers to risk no more than 5% of their balance on one trade. I personally, prefer my risk per trade to be near 1%-2%. But how should we, as traders, act when a new opportunity arises and we already have an open position with our risk limit hit? Should we use the opportunity and double our potential risk? How […]
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