Hi. Would anyone kindly give me light on what causes a currency group volatility where one would find, for this example I’m going to use the GBP. Where GBP group is showing weakness or strength across all the currencies it’s paired with…and to be specific I would like to see the strength/weakness of that currency breaking the previous session high or low across the board…what kind of economic events causes those movement and on which days can I expect those movements
Thanx
The main driver of interest rate strength would be a rising central bank interest rate. These are announced for each currency about monthly and you can see the scheduled announcement dates on any economic calendar from your broker or a financial news website.
Other news (such as inflation figures) can interfere with this diagnosis: falling inflation often leads to a reduction in interest rates.
Yes, you can trade in different currency groups because it will add advantage to you. But do it very carefully so you don’t fall prey to losses.