Change is a law of nature. And if that is the case then forex markets is no exception. Tangled within the cluster of economies-big/ small, eyeing on every inch of the news- home/foreign country, in search for any possible ripples it could form out of it and then carefully hand-picking your currency pairs to launch your trade and finally cutting a profit. All this definitely calls in for a lot of “homework” because whether or not you drive profits, it all comes down to a single point- your choice of trading currency!

Your choice on the other hand, directly correlates to the various other deciding factors. Some of them being your risk profiles, the category of trader you fall into-day trader, speculator, etc and even the kind of trades you prefer-whether you prefer going long or short and lastly (and most importantly) the global news and major economic happenings.

But gathering major news and analysing its impact on the performance of the forex market, for instance might be an hands-down routine for seasonal traders who have had a profound experience in forex. But the newbies and those who are still in their “thinking-to-start-trading” stage might find this onerous and would need some assistance to set their foot on the right track.

For the benefit of those who have just started trading and those who feel a little lost in the currency jungle, we have compiled a list of currencies that needs to be watched out this calendar year 2016.

The Chinese Yuan

China has been bleeding with economic slowdown while the government is desperately trying every measure to refrain yuan from devaluation. Though the government’s GDP numbers can bring in some fresh air to breath, the fear of capital outflows from China have raised some doubts whether the shanghai index would be able to rebound in time.

Australian & Canadian dollar

While a lot of fearing on the part of CNY was seen, it certainly did impact the oil prices.

Oil was seen rebounding from its 13-year lows on Thursday (21st January, 2015) and what effect did it had on other currencies? Well, it helped in pushing oil-linked commodities such as AUD and CAD against its US dollar counterparts.

Greenback

The expectation that US Fed would leave the rate unchanged between 0.25 and 0.50 percentage at the end of the policy meeting that’s schedule on Wednesday have left a lot of investors betting on the USD. But the market pundits have another reason to worry. A stronger dollar will possibly ease inflation pressures with the advent of recent global market volatility, economic outlook could be worrisome.

Keep pace with major news

While every economic news has its impact on the markets in some way or the other, staying on the top always helps in ascertaining your next moves.
So keep your eyes wide open to the top forex news that’s doing the rounds and then apply your strategies on your trades.

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