Forex Strategy Video: Using Fundamentals to Trade GBPUSD, NZDUSD
• While there are many fundamental elements to trading FX, the two key aspects are risk and rates
• Where most recognize the influence of 'risk on / risk off', yield forecasts are just as critical
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Both GBPUSD and NZDUSD have enjoyed strong rallies recently and both have flagged into the end of this past week. Technicals offer tempting scenarios of heavy trend or sharp reversal depending on how we interpret them. Adding fundamentals to our checklist can help us better gauge breakout versus follow through. Amongst the myriad of factors that go into determine an exchange rate, there are two key fundamental dynamics that guide the market most of the time. Today's Forex Strategy video explains the importance of risk trends and interest rates using the appealing cable and NZDUSD as examples.
Find out what event risk can threaten stir underlying sentiment trends or leverage volatility for GBPUSD and NZDUSD with the DailyFX Economic Calendar.
Use the DailyFX-Plus Technical Analyzer to identify possible trade setups.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.