Looking Ahead at Forex Trading in 2012
With 2011 proving to be a difficult year in the wake of the Eurozone crisis, what can Forex trading expect in 2012? Well, the consensus has been resounding so far; more of the same. The volatile nature right now in Forex trading market is proving that it’s here to stay. The surprising developmental trend of late has been to track political announcements in the media when deciding on markets rather than observing and tracking the average rates and financial news.
With the Euro hitting a freefall in October, it seems all the promise of reforms in the EU have amounted to naught. There are still tools naturally that you can and should use; invaluable to the Forex broker Metatrader continues to track the markets.
A foreign currency Forex trading strategy that is unlikely to go anywhere after two years is the keen tracking of regulation. Regulation appears to continue as a key area of concern, however, the focus will shift from rule-making to implementation.
With many deadlines outlining 2012 in the Forex trading system, expect a lot of changes to take place as compliance is enforced. Legislation is also being finalized on the topic of online Forex trading accounts; the new rules are heading our way fast and one needs to be prepared. Taking out a Metatrader 4 demo account is a Forex trading strategy for toying around with the new rules without the risks of losing substantial income.
Bright spots in Forex trading forecast for 2012
Despite all the doomsayers and gloomy prospects, there are many bright spots promised for Forex trading in 2012. With the internationalization of Chinese renminbi, the off-shore value of the Chinese Yuan will be an interesting new addition to the Forex. The prospect of finally being able to trade into the Chinese market without the added risk is good news for traders and most certainly for the country. Ironically this sort of governmental health in the Forex market may be good in this case, but worldwide it’s a sore point that traders are closely monitoring.
The reports for 2012 are almost bipolar to a point of confusion; on the one hand, we’re told that we can expect consistent volatility in the Euro. On the other hand, there is a lot of talk that 2012 is the year when Europe leaders step up to the plate and garner confidence from Forex trading markets. It’s impossible to predict, but that goes with the nature of the Foreign exchange markets, I’m sure. The Greek debt crisis is similarly being met with bipolar opinion, and the eventual outcome will play a key role in future sovereign debt situations and how traders respond.
Do you want to know the future of US dollar? If yes, read article here.
Overall 2012 looks like a “high risk – high reward” year for Forex trading. There is an opportunity to ensure you champion on to great gains, but there are more than enough reasons to be weary as well. As the old saying goes, “nothing ventured nothing gained” and that will never be truer than in 2012.
Eugene Calvini is a proficient writer and keen observer of the Forex markets.
P.S.: Regarding this article, I advise you to read “How to make money with Forex trading during the EU zone crisis” and “What is the future of the USD.”
And what is in your Forex forecast for 2012? Please reply with your answers!