What Will Drive the Forex Market This Summer? #Askfinmag

Saturday, 27/06/2015 | 08:00 GMT by Victor Golovtchenko
  • Our readers wanted to know more about key movers of the currency market this summer and market maker behavior on Mondays
What Will Drive the Forex Market This Summer? #Askfinmag

With a turbulent week ahead, a number of questions have flocked to the Twitter account of Finance Magnates under the regular #askfinmag campaign.

The short answer is no, markets are in a wait-and-see mode with the Federal Reserve poised to raise interest rates for the first time in years. Last summer was mired in low Volatility and soul-crushing boredom – of course this picked up during the accompanying autumn.

While we do not think the situation in Greece will have a speedy and lasting resolution, we believe there are few other stimuli presently capable of fomenting market movement. You have some unfavorable signs brewing in the Chinese stock market, but otherwise nothing too scary is looming on anyone’s calendar.

The shift in expectations on the timing of the first Federal Reserve rate hike will be the key moving factor for the U.S. dollar, and any signs of continued dovishness by Federal Reserve Open Market Committee members will be greeted by the market with apprehension to continue holding their long dollar positions. Of course, the question of what a good alternative can be, will stand and shape the summer markets this time around.

Again, the short answer is no. If you’re talking every Monday, the market makers start their operations and trading from the first hours of the market opening in New Zealand. In the beginning, Liquidity is thinner than usual, but as more orders start flowing in from Sydney and especially Tokyo, the market normalizes in terms of liquidity. This leads to the peak time in London, where the majority of FX transactions occur.

If you are referring to the lot size within the MT4 platform, it is up to the broker to determine what the size is. The best answer you can get is from the broker with whom you trade to provide you with additional information regarding this matter.

With a turbulent week ahead, a number of questions have flocked to the Twitter account of Finance Magnates under the regular #askfinmag campaign.

The short answer is no, markets are in a wait-and-see mode with the Federal Reserve poised to raise interest rates for the first time in years. Last summer was mired in low Volatility and soul-crushing boredom – of course this picked up during the accompanying autumn.

While we do not think the situation in Greece will have a speedy and lasting resolution, we believe there are few other stimuli presently capable of fomenting market movement. You have some unfavorable signs brewing in the Chinese stock market, but otherwise nothing too scary is looming on anyone’s calendar.

The shift in expectations on the timing of the first Federal Reserve rate hike will be the key moving factor for the U.S. dollar, and any signs of continued dovishness by Federal Reserve Open Market Committee members will be greeted by the market with apprehension to continue holding their long dollar positions. Of course, the question of what a good alternative can be, will stand and shape the summer markets this time around.

Again, the short answer is no. If you’re talking every Monday, the market makers start their operations and trading from the first hours of the market opening in New Zealand. In the beginning, Liquidity is thinner than usual, but as more orders start flowing in from Sydney and especially Tokyo, the market normalizes in terms of liquidity. This leads to the peak time in London, where the majority of FX transactions occur.

If you are referring to the lot size within the MT4 platform, it is up to the broker to determine what the size is. The best answer you can get is from the broker with whom you trade to provide you with additional information regarding this matter.

About the Author: Victor Golovtchenko
Victor Golovtchenko
  • 3424 Articles
  • 26 Followers
About the Author: Victor Golovtchenko
Victor Golovtchenko: Key voice in crypto and FX, providing cutting-edge market analysis.
  • 3424 Articles
  • 26 Followers

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