Any trader of foreign currencies likely understands the influence that both local and international politics have on currency values. Successful online forex trading involves following the changes and trends that are taking place across the globe, and making the right trades at opportune moments to capitalize on changes of currency values.
Without a doubt, a current event that will influence the forex markets is the United States presidential campaigns and election that will be held in November. The United States is one of the most powerful nations in the world and whoever becomes the leader of that nation – whether it be Democratic candidate Hillary Clinton or the Republican bid Donald Trump – will have an enormous sphere of influence. Every decision they make has the potential to influence online forex trading.
Following these trends can be extremely difficult, even for the most experienced traders. That’s why it’s important to utilize the tools provided by your trading platform. For example, XTrade offers a powerful platform that allows you to track the values of currencies and can help you make educated trades. For more information, click here.
Election Debates May Influence Forex Values
One example of how the election campaigns can influence online forex trading is this week’s televised election debates. Donald Trump will face off against Hillary Clinton for what is expected to be one of the most televised events of the year.
The United States dollar is vulnerable to fluctuation in its value and comments by the candidates can push the dollar in one direction or another. The candidates sit in a powerful position and they are able to influence currency values with the slightest comments.
According to Reuters, traders will be watching the debate closely to see who comes out on top because the winner could influence the dollar’s short-term value.
“If the debate ends in favour of Trump and adds to his support, we may see dollar/yen slip on risk aversion. Trump has strongly backed a weaker dollar, which is likely to retreat particularly against the yen if he is seen to have taken the lead,” said Barclays Japan FX strategist Shin Kadota.
Using Trading Platforms to Capitalize on Political Changes
So, how can you use your trading platform to capitalize on the changes in currency values that result from political changes? The first step is to simply stay informed and keep up to date with current events. Try and read many different sources of news, especially those with a financial orientation, in order to get a full picture of the state of affairs in the world. This will help you stay notified of potential changes in currency values that you can trade against.
Similarly, it is important to use the best online forex trading platform. Be sure to use a platform that lets you trade wherever you are, both on mobile and desktop computers. This way you can make trades on a moment’s notice. Similarly, use a platform that has good customer service. You want to be sure that you have access to support and services in the unlikely scenario that you face an issue with your trading platform.