Category Archives: currency exchange

EUR/USD clings to small gains as investors

EUR/USD Clings To Small Gains As Investors

In the third week of September 2017, many observers of the currency markets in general and of the euro-dollar pair, in particular, were struck by the behaviour of the pair, which after equalling its weekly high slipped back into negative territory but then recovered in response a release of macro-data. The data itself seemed to be sending mixed messages but the general interpretation of this data by those who have a professional interest in following these matters was cautiously optimistic. The end result was a gain of 0.2% for the day, a small gain but a gain none the less. In discussing the matter, those observers to whom we have already referred made reference to a Reuters report which cited an anonymous European Central Bank source, who stated that the rest of the year 2017 might see a delay in the hitherto proposed tapering of the Quantitive Easing steps which have been operating. Indeed the report suggested that the tapering might not actually start to occur until December 2017. The Reuters report also mentioned that the on-going strength of the Euro was causing uncertainty to manifest itself on the General Council, with conflicting points of view being expressed by those with differing opinions. This news provoked the slight fall-back in the Euro that marked the beginning of the period which is under discussion in this article. However, the retreat was a small one and the euro had no difficulty in recovering as the mixed data from the US prevented the dollar from being able to perform strongly against its competitors.

Indeed the US dollar index was stagnant during this period and ended the day showing a slight fall. The question occupying the interest of followers of this all-important pair of currencies concerned the possibility of a rate hike. It was generally agreed that without the assurance of an early hike and an assured one to follow at the end of the year, any possible gains for the dollar will not ultimately prove to be sustainable. The good news was that in the political world, the government of the United States chose that time to hint strongly that the last week in September will see tax reform being seriously discussed. It was agreed, at least by more optimistic observers, that the combination of this possible September hike, with more to come would see an end to the decline in the price of the dollar, at least for the time being. Concerns for the performance of the dollar while confidence is uncertain following what is perceived to be erratic behaviour by the still new legislation and also concern over the fate of the euro following the unexpected gains of the far right in the German general election will almost certainly further affect the performance of this major pair of currencies.

Spread betting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.

The Dollar wobbles after soft results and political fears

The Dollar Wobbles After Soft Results And Political Fears

The week ending the 16th June saw the EUR/USD pair achieve a yearly high at 1.1295 o0n the 14th but ended with the figures flat at 1.1197 after the announcement of inflation figures from the United States that seemed disappointing to all concerned, including, many suspected, those actually making the announcement. This came after a week in which the US Federal Resave continued to strike a hawkish tone, especially with its unveiling of a twenty-five basis point rise. The Fed Reserve, showing a commendable commitment to seeing the bright side in a climate where such views are hard to find, focus on the improving US labour market. This is undoubtedly an important factor though it could really be set against increasing political turmoil and softer than expected economic results remains to be seen. In particular, the continuing controversy surrounding President Trump and investigations into the allegation that he attempted to obstruct justice during the Comey affair seemed set to bring about stagnation in US economic policy, especially in those areas which caused confidence to burgeon in the US dollar in the first instance. It will be hard to for the President to keep his manifesto promises about tax reforms and large scale infrastructure investment now that he is under investigation by a special prosecutor and even his own party is beginning to cautiously distance itself from him. Further adverse signs for the dollar came as other central banks indicated that they would be looking towards a normalization of policy in the immediate future, the Bank of Canada leading the way and even the Bank of England making hawkish sounds, despite the looming Brexit negotiations and the UK’s own plentiful political turmoil.

Friday the 16th June saw the announcements that further confirmed the somewhat gloomy prospects for the US dollar, at least in the immediate future. While both housing and building permits were up, the degree of the increase was far lower than had been expected by most. Perhaps most worrying for the dollar, consumer confidence had fallen to levels not seen in this presidency. The President further set the cat among the pigeons by announcing in a speech in Florida that he would be seeking to roll back the deal with Cuba achieved by his predecessor’s administration. Observers emphasised that the reforms to the deal would be small scale and cosmetic, and thus unlikely to have lasting consequences but in the present state of the US, it seems that no announcement can be small enough in scale not to have fairly hefty political consequences. In contrast, the Euro seemed buoyant especially in light of the news that Greece had, after its extended crisis, at last, come to a deal with its many creditors on the next stage of its equally protracted bail-out.

Spread betting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.

Canadian, Australian and New Zealand dollars perform well

Canadian, Australian And New Zealand Dollars Perform Well

The financial week that ended on Friday 16th June 2017 saw the currencies of Canada, Australia and New Zealand all performing strongly. Of the three the Canadian dollar had the best week, rising after remarks made by senior members of the Bank of Canada which expressed confidence in the country’s continued economic growth in vital areas. Indeed the Bank’s Senior Deputy Governor even hinted at the first reduction in economic stimulation that Canada had experienced in seven years. In contrast to the interest rate hikes advocated in the same week by three members of the Bank of England’s Monetary Policy Committee, this proposal was an indication of underlying confidence in the success of the economy rather than a reaction to higher than expected inflationary figures. The Governor of the bank, speaking later that week, seemed to suggest that in his opinion the rate cuts in effect for the previous seven years had done the required job and now might be the time for an increase. If these suggestions are backed up by strong consumer price and retail sales figures than the Canadian economy may see a rate hike and a result the USD/CAD pair could sink below 1.31.

At the same time that this news was emerging from Canada, the Australian dollar was benefitting from a better than expected report of the country’s labour market and as a result, the AUD achieved its strongest result against the USD for two months. The labour figures were unexpected but can be seen as an indication of another economy that is recovering strongly and in a fashion that brings confidence for the future. The Australian Central Bank met earlier in June and held rates steady while expressing confidence; there was no talk of a rate hike in Australia which would indicate that the healing work of reduced rates in still working its magic, but another period of steady and sustained growth could see the Australian Central Bank making announcements similar to those made by their Canadian counterparts. Whatever the eventual outcome, the week’s announcements saw the AUD climb out of its 0.7520 to 0.7567 trading range. The result may be an outlier of what is to come.

The New Zealand dollar recovered handily from the losses which it had sustained in the wake of its GDP losses after the election results became known. The RBNZ seems unlikely to much change its present cautious policy as the economy is still showing mixed signs; slower activity in housing and decreased job ads set against increased confidence among both businesses and consumers. Again the picture is not as optimistic as Canada’s and nor is it as optimistic as Australia’s, but the underlying confidence among the people who make up the economy should prove a good omen for the future prospects of the New Zealand economy.

Spread betting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.

Markets uncertain as UK sends mixed messages before Brexit

Markets Uncertain As UK Sends Mixed Messages Before Brexit

The week ending the 16th June saw the markets displaying uncertainty about the GDP/USD pair with consecutive Doji candles on the 14th and 15th with a significant degree of through-flow only highlighting this lack of assuredness of the part of investors. This is understandable, as uncertainty seemed to be the underlying theme of the events which underpinned economic developments during the week in question. Indeed not only the UK but also the USA seemed to be sending out mixed messages, with the respective Central Banks sounding hawkish noises as the political news indicated only increasing levels of uncertainty, doubt and general indecision. The markets’ uncertainty seemed a reasonable reaction in the face of this medley of mixed messages.

The position of the UK seemed clear at first glance, but a second and a third revealed deeper and more baffling trends. The government of the UK was and is facing the Brexit negotiations, due to commence on the 19th June in a weakened condition following the decision to call a snap election. If Prime Minister May hoped to strengthen her majority and gain a clear mandate to negotiate Britain’s withdrawal from the European Union then she scored a political home goal of epic proportions. In the aftermath of the election, she was left with no overall majority and forced to scramble to negotiate a Supply and Confidence arrangement with the DUP of Northern Ireland if she was to be able to govern at all. As the DUP is a confirmed Euro-Sceptic party then this might seem to indicate that the UK might attempt to negotiate a hard Brexit, a move most British businesses earnestly seek to avoid. In light of this surely the future of the GBP can be predicted.

Or can it? The fact is that the DUP is Euro sceptic in principle; it was the most sceptical of all British political parties before the rise of UKIP. However, it must be remembered that the DUP is a party of Northern Ireland and thus wants to maintain as open a border as possible; the preferred phrase in use is ‘frictionless’. This is very much in accord with the sort of Brexit that British businesses are hoping for, and it is entirely possible that a soft Brexit was one of the conditions insisted upon by the DUP before they entered into any coalition deal.

In light of this consideration we have the UK facing a stern seeming EU set on ensuring that the matter of British obligations are honoured before any trade negotiations be considered, with a British government that may be committed to achieving a free trade, minimal customs, the continuing recognition of pre-existing standards and rules and the maintenance of universal access to goods and services. In light of this, is it any wonder if the market is unsure of what will eventually transpire?

Spread betting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.

GBP to suffer after political home goal

GBP To Suffer After Political Home Goal

The aftermath of the UIK’s controversial 2017 General Election seemed to come into focus towards the end of last week after a period of uncertainty. This came as yet another blow to the new government of Theresa May already left reeling by losing its majority in the British Parliament and having to form a minority administration in combination with the Democratic Unionist Party of Northern Ireland. Initially, following the immediate dismay in the wake of the comparatively poor performance of the sitting government, Sterling seemed to rally as hopes grew for a Soft Brexit. This was paradoxically a result of the involvement of the DUP in the new administration. The paradox here is that, until the rise of UKIP, the DUP were seen as the most Euro-Sceptic of all the larger British political parties. However it is always important to note that the DUP is a party of Northern Ireland, and Northern Ireland relies on its close trading links with the Republic of Ireland. The DUP is therefore very definitely in favour of the frictionless border with the Republic and no observers could see how a Hard Brexit could be negotiated or realised if such an open border existed between part of the UK and part of the EU. The prospective reality of this eased fears somewhat as the start of the Brexit negotiations loomed. Sterling also recovered against the dollar in the wake of softer than expected US economic announcements and also because of the USA government’s own political troubles.

However, these tentative signs that all was not as grim as it looked for the pound in the immediate future were soon offset by cold, hard realities revealed by eh EU’s demeanour and announcements, and also by hawkish behaviour from Euro currencies. The European Union remained firm in its commitment to a policy of refusing to consider future trading negotiations until the finality of Britain’s exit was hammered out at the conference table, these details including the small matter of financial obligations on the UK’s part amounting to €100 billion. Perhaps not surprisingly the chart for the Euro and Sterling indicated a risk towards the downside with technical indicators firmly in the negative.

All in all Theresa May’s decision to call a snap general election in 2017 seems set fair to count as one of the most decisive home goals ever scored by a party in government. The desire was too firm up the Conservative government’s position and grant it a mandate to negotiate Brexit strongly with a country united behind a strong administration. The end result has left a weak and shocked minority government in office, beholden for its ultimate support to a small party that, in one vital area of policy, is committed to steps that would sabotage the Brexit in the eyes of many of its supporters. Thus a weakened government faces negotiations vital the country’s economic future. It is not surprising that Sterling looks set to perform negatively in most major pairs.

Spread betting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.

 

 

How Forex Brokers Make Money

How Forex Brokers Make Money

The forex market (foreign exchange market) is where traders buy and sell a variety of currencies depending on whether they think such rise and fall in value. It is considered to be one of the highest-risk markets, yet still, sees over $5 trillion traded daily. To make a trade, you have to go from an intermediary forex broker to execute the trade. Even if the trade makes money, or loses money, the broker still profits on commissions and fees. Understanding in what areas forex brokers can make money may help you find the best broker for your needs.

 

The Role

 

A forex broker receives orders to buy or sell currencies and then executes such orders in real time. Typically operating on the OTC (over the counter) market. This market does not have the same regulations placed upon it as other financial exchanges, and the broker may not be bound by the rules regarding other securities transactions. With no centralised clearing mechanism, the risk is placed upon you if your counterparty defaults. Remember to investigate and conduct your due diligence on the counterparty before you enter into any agreements.

 

The Fees

 

In return for executing orders, a forex broker will want to be paid a commission for each trade or spread. This is where they make their money. A spread is a difference between the asking price and the bid price of a trade. The bid price is what amount you receive for selling a currency, whereas the asking price is the amount you pay for a currency. This difference between the two is referred to as the spread. A broker could choose to charge a commission on the order as well as a spread on a trade. If you see a broker offering a commission free trade, they will probably have a large spread to make up the difference.

 

The Spread

 

The spread itself can be fixed or variable. If it’s variable, the amount will vary depending on the market, for example, a change in interest rates affecting the major market could have a knock-on effect on the spread. In some cases, it may be advantageous to you and to others unfavourable. If the market becomes volatile, it may result in a much higher price than you expect. Be careful and pay close attention to a forex prices, as they can charge a different spread for buying and selling the same currency. Overall though, a well-capitalised broker who works with a number of large traders generally has competitive prices. What this means is that for traders it pays to shop around in order to get the best rates.

 

The Risks

 

It is possible to make margin trades through depositing a small amount. However, this introduces a lot of risks. In 2015, the Swiss National Bank no longer supported the euro, resulting in the Swiss franc appreciating significantly. Traders who did not foresee this event were not able to meet margin requires and lost a lot of money and a few even went bankrupt.

 

Spreadbetting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.

 

Alexander Bowring is a London based writer and a Southampton Solent University Screenwriting graduate. He has worked alongside TV personality and Telegraph feature writer Alison Cork, whilst also having produced content for ITV, This Morning, Canvas8, Who’s Jack, Alison at Home, and Bonallack & Bishop Solicitors. Alexander also has a keen interest in investments.

Forex trading guide for GBP/KWD

Forex Trading Guide For GBP/KWD

Pretty much everybody knows about currency pairs like the USD/GBP – these are the popular Forex trades that nearly every currency trader dabbles in. But just because it’s popular doesn’t mean that it’s the best, and some of the more underrated currency pairs can actually provide quite a bit of bang for your buck. The GBP/KWD currency pair is a fantastic example.

 

Trading this currency pair makes complete sense – after all, the two economies are closely linked together, with a substantial portion of trade flowing between the two countries. This particular trade is known for its stability and predictability, which enables traders to generate consistent returns on what is an often-underrated pair. That said, understanding the fundamentals of this currency pair is an important part of being able to take advantage of what it has to offer, and this guide aims to inform you of all the most important points you need to know when trading the GBP/KWD.

 

As simple as this concept seems, it’s often misunderstood by many newer traders. All currency pairs have a seasonal element to their performance – this is largely tied to the nature of the economies that these currencies depend upon. While you can’t be an expert on every economy, you can look up several decades of historical data relating to these currencies, which will give you a sense of what the long-term trends look like for pairs such as the GBP/KWD.

 

In many cases, GBP/KWD price dips in March and May are not uncommon, while for the pair to peak in the fall is also, once again, not uncommon. This doesn’t always exactly hold, but it is largely true for most currency pairs, GBP/KWD included. All forex trades have historical charts that you can access; giving you exact rates of change that will help you predict the general trend of a currency in the near-term. These aren’t just for veteran traders – anybody can access them entirely for free. All currency pairs have their own unique seasonal trends, so never fail to do your research before you commit to making a trade

 

You might have heard some people refer to forex scalping as a form of cheating. It isn’t – but what it happens to be is a very effective way to reduce your overall losses while maximising your overall gains if used correctly. Watching the small price movements of the GBP/KWD throughout the course of a day will position you to make the greatest profit. If you want to take advantage of this, keep three Exponential Moving Average charts near you – this will allow you to fully view every possible forex trade that you can make as well as view relevant technical information for each potential trade. Many of the most profitable traders utilise this technique, and you should too.

 

Don’t hesitate to take advantage of the GBP/KWD currency pair. Its relative anonymity will soon disappear as more traders become aware of how lucrative it can be, and knowing how to trade it effectively can net you some serious profits over the long term. This guide will provide you with all of the most important facts and tips, but ultimately you are responsible for arming yourself with the knowledge that you need to succeed when trading GBP/KWD.

 

Spreadbetting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.

 

Alexander Bowring is a London based writer and a Southampton Solent University Screenwriting graduate. He has worked alongside TV personality and Telegraph feature writer Alison Cork, whilst also having produced content for ITV, This Morning, Canvas8, Who’s Jack, Alison at Home, and Bonallack & Bishop Solicitors. Alexander also has a keen interest in investments.

Post-election rumblings surrounding USD/CAD

Post-Election Rumblings Surrounding USD/CAD

One of the casualties of Donald Trump being elected as the 45th United States president has been the Canadian Dollar, but will this trend continue? While we wait to find out, we can enjoy the gains on USD/CAD, with the currency pair reaching the kind of levels not seen since February 2016.

 

There are three good reasons that this decline has happened, and all three are related in some way to Donald Trump and his successful presidential campaign.

 

Dollar strength

Trump has announced some bold plans to cut taxes and increase spending on just about everything. His plans mean that there will be more borrowing from bond markets and higher interest rates and inflation. In other words, everything is supporting the US dollar. He could theoretically pass all of these plans through Congress, as the Republicans currently control it. In reality, however, these Republicans are against increasing debt. Even so, the markets are taking Trump seriously at least. The Canadian dollar isn’t bucking this particular trend, with that having an effect on the USD/CAD.

 

Trade deal confusion

One of the vows Trump made was that he would revamp trade negotiations, in particular, the NAFTA agreement held between the US, Canada, and Mexico. Canada (along with the USD/CAD) is reliant on trading with their southern neighbours and exporting to them. Uncertainty surrounding trade relations could hurt the Canadian economy across the parallel 49th. This damage could happen even if the change itself doesn’t, and even though most of the anger is directed not towards Canada, but towards Mexico.

 

Oil price instability

The price of crude oil has gone down. Part of this is because of reasons relating to Trump. A stronger dollar will usually bring reduced oil prices along with it, but there’s more to the story than just this. Iran recently announced that they have two new oil fields that are producing oil, but it also looks like OPEC is no closer to putting together a real agreement for its regulation either, which is creating problems, as the Canadian dollar is also weakened by reduced oil prices.

 

Currency volatility

By the end of November, the USD/CAD was trading at 1.3567, which is the highest that it’s been since February. The next level the currency pair can reach is 1.36535, which would be a swing low from early February. The record is currently 1.40 and it worked well as resistance in the tail end of 2015, meaning that it is also a strong line. If it were to go up to 1.4325 this would be a significant step on the road towards 1.47, which does seem somewhat distant.

 

There really is no other way to address the situation, as the USD/CAD is bracing itself for a rocky time in a Trump run world. While the post-election result gains are apparent, it’s pretty clear that such does not tell the whole story of what may very well be on the horizon.

 

Spreadbetting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.

 

Alexander Bowring is a London based writer and a Southampton Solent University Screenwriting graduate. He has worked alongside TV personality and Telegraph feature writer Alison Cork, whilst also having produced content for ITV, This Morning, Canvas8, Who’s Jack, Alison at Home, and Bonallack & Bishop Solicitors. Alexander also has a keen interest in investments.

USD/JPY poses interesting questions following Trump win

USD/JPY poses interesting questions following Trump win

Performance charts seldom lie, with the USD specific option showing you that the plunge in the dollar that was expected to arrive following the victory of Donald Trump did actually happen. The dollar really came back to life after the outcome of the election was, but the dip that occurred is pretty much clear to see. The improvement is because Trump is expected to spend more and increase inflation. The unpredictability of Trump was expected to lead to the stocks and the dollar overreacting and plummeting in the event he won, but the market being on such an upswing following his victory is about as surprising as the victory itself. All the polls were in the favour of Clinton after all.

 

The sentiment was magnified for the USD/JPY because the moves of the dollar were intensified thanks to strong moves by the yen. During Election Day, as it became more apparent that Trump had a chance of winning, so the dollar did indeed start to plunge. As was also expected the perception of market risk lead to people investing in, and boosting, the safe-haven of the Japanese yen. This drop in the dollar and rise in the yen led to the USD/JPY rate plummeting all the way to 101.00 before it eventually bounced back.

 

By the time trading opened on the day following the election, there was a reversal in this overreaction and the dollar bounced back and the yen was put under pressure by the appetite for risk following Trump’s win. This led to USD/JPY surging above its 200-day moving average and above major resistance to settling at around 105.50. The dollar was further strengthened and the yen was further weakened just 24 hours later, pushing the USD/JPY even further to the point that it broke out above the key downtrend line that went all the way back to February 2016.

 

It was expected that the market would be this bullish if Clinton won, but it looks like this outcome was the case with a Trump victory as well. The strength of the dollar was also further enhanced because there was less post-election volatility than usual. It’s also expected that the Federal Reserve are on the verge of raising interest rates. St. Louis Fed President James Bullard said that he foresees a rate hike, although the actual rate will still be pretty low for years to come. With the dollar continuing to gain strength leading to the mid-December Fed meeting, as well as the continuation of optimism in the market, it’s expected that USD/JPY will continue to rise.

 

The next resistance targets to be broken are the 108.00 and the 111.00 levels. It’s not known if it can reach those highs, but the markets will give it their best shot. Right now all eyes are on the next meeting of the Fed and President-Elect Donald Trump. Given the way that he’s already restored the markets, perhaps some people will be a little less apprehensive about the billionaire sitting in the oval office.

 

Spreadbetting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.

 

Alexander Bowring is a London based writer and a Southampton Solent University Screenwriting graduate. He has worked alongside TV personality and Telegraph feature writer Alison Cork, whilst also having produced content for ITV, This Morning, Canvas8, Who’s Jack, Alison at Home, and Bonallack & Bishop Solicitors. Alexander also has a keen interest in investments.

tale of trading the GBP/NZD

Telling A Tale Of Trading The GBP/NZD

Many currency pairings involving the GBP are quite popular with traders around the world, but some combinations are less popular than others. In spite of its stability and spread the GBP/NZD currency pair remains relatively undiscovered when compared to others like the GBP/USD and the GBP/EUR. I decided to take a look at the rhythm of this currency over a period of several weeks, and I have come to the conclusion that this pair represents one of the best possible opportunities to earn great returns. I’ll outline some of the bigger points that I think are relevant to those looking to trade the GBP/NZD.

Like most currency traders, much of my portfolio was concentrated on the GBP/USD and the GBP/EUR currency pair. While these are relatively steady pairs, they’re very commonly traded and there is little new ground to tread here. Most of my positions on these pairs yielded middling returns at best, but after refining my approach I managed to obtain positive returns nine straight months in a row, with my total monthly earnings exceeding £1,000 from a much smaller initial fund.

While this seems rather hard to believe for a lot of traders, this wasn’t quite as hard as some people made it seem, especially since people regard less-traded currency pairs as being too much of a risk. Keeping my trades firmly rooted in the facts, coming out ahead didn’t prove to be too difficult a task. And with my initial success came a determination and drive to do better.

My streak with the GBP/NZD occurred between October and November 2015, which is one of the better times to trade currencies. It’s understandable to be sceptical of my claim, but if you stick to your guns and play your hand smart, you can make it happen again and again. Don’t expect it to be a regular thing, but it will never happen if you don’t try.

I don’t want to give the impression that this is was an easy profit to obtain – I had an earlier losing streak that lasted for several days in a row and cost me several hundred pounds. In spite of my feelings of dejection I pressed on, and after re-assessing my strategy I managed to turn around my losses, even managing a £400 gain in 24 hours. That gain came off of just a £75 initial investment, so it was quite a tidy return. It’s easy to want to give up when things get rough, but even the best traders have rough patches. After that turbulent period, the GBP/NZD is now one of my most consistently positive investments.

That’s my own story surrounding the GBP/NZD currency pair – hopefully, it gives you some insight as to what goes on in a trader’s mind when they commit to something new. Betting on a less well-known currency pair can be a scary thing, but with time and practice, you can make it a very profitable venture. Just make sure you’ve got the funds and the patience to make it work!

Spreadbetting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.

 

Alexander Bowring is a London based writer and a Southampton Solent University Screenwriting graduate. He has worked alongside TV personality and Telegraph feature writer Alison Cork, whilst also having produced content for ITV, This Morning, Canvas8, Who’s Jack, Alison at Home, and Bonallack & Bishop Solicitors. Alexander also has a keen interest in investments.