Time to Slow Down and Evaluate Your Forex Trading Positions

May 28, 2010

Forex trading forecast

Now may be the time to slow down and reassess your forex trading positions. With so much going on right now, it is little surprise that U.S. economic data has been relegated to second-tier status in terms of market moving news.

This might mean that now is a good time to take a deep breath and contemplate what happens next. The forex trading forecast is expected to be relatively quiet, with fairly small moves on the currency market. Yesterday’s risk rally has petered out, but risk aversion hasn’t completely taken over yet.

GFT’s Kathy Lien offers some insight in FX360 on what you might consider this weekend, which is expected to be relatively quiet:

Between the oil spills in the Gulf, the possibility of war in North Korea, speculation about China dumping eurobonds and the chaos in European markets, the fact that secondary U.S. economic data are the only event risks this week should give investors the chance to square up their positions early and take the weekend off to reassess their exposures.