Indicators of growth of the global economy have not been so positive lately, having an effect on Forex day trading. Due to this, investors have been rushing to the US dollar, which rose consequently. This is due to its role as a safe haven globally. The knock-on effect for Forex patterns is that the euro has also been dropping to a 3-month low. It is 0.45% lower due to poor data from China and the US. The pound has had a similar performance, dropping 0.60% and also going to a 3-month low on the Forex exchange.
Exploring Forex Patterns Beyond Currency Markets
The Australian dollar has also been knocked down, going 1.00% lower in the forex exchange. Undoubtedly, the data coming from China and Australian institutions has likely made the situation worse for the Australian dollar. It fell 1.46% down to below $0.64. With China being its major trading partner, it is only natural for this effect to take place. Australia’s central bank’s policy also had negative effects. It has kept its cash hold rate at 4.10% for multiple months in a row. The bank itself has given indicators that it could lift this rate in the coming months if it proves to be necessary. However, the markets themselves doubt this possibility, only giving it a 30.00% chance of actually happening.
An important index for Chinese services, the Caixin services PMI, is at a low point. We haven’t seen such low levels since before the lifting of the lockdown. This is quite a poor indicator for such an economic giant. We should have expected far more growth from China once lockdown measures were gone. This has compounded with similarly negative data coming from China recently. Similarly, the performance of the Eurozone has not been so great. Business activity growth has been declining at the quickest rate in years. So, Forex day trading has been poor all around.
