A consumer survey by the University of Michigan crossed the wires at 82.8 versus the expected 90.4 consensus forecast. The US Dollar has remained unfazed even after the results were released, maintaining its attention on the fewer sales figures. The country’s economy seems quite weak, despite a massive monetary and fiscal stimulus.
The green candle shown by the US Dollar earlier this week is now red. The candle had rocketed earlier this week as traders expected the Federal Reserve to tighten its policies. However, the Federal Reserve believes that inflation is a temporary event and that it would end after the surging demand in the US economy is over.
Such events have created confusion in the forex market. Traders have tried to understand recent political and economic events to inform their positions. As well as discover what is the best forex trading platform.
Despite these sentiments from the Federal Reserve, the survey conducted by the University of Michigan reveals different expectations about inflation. The results help reveal what consumers think about price fluctuations in the economy.
The 1-year expected inflation change crossed wires at 4.6%, while the 5-year change was at 3.1%. Forex traders now have an idea of what to expect with price movements.
One of the main factors that have affected the forex market in 2021 is the stimulus package. The US Democrats and Republicans recently agreed to a $900 billion stimulus package. Analysis has predicted more volatility in the market following this package.
Consequently, traders are wise to stay up to date with the recent factors and events affecting price moves. Remaining alert about these issues will help them navigate through uncertain trading waters and manage risk. Additionally, investors should use reliable trading platforms, including MT4 and MT5, which are considered one of the best trading platforms.
Metatrader 4 platform is well known and it is the industry standard. Most brokers offer trading through MT4 or an in-house bridge to the platform. The platform was launched in 2005, and it allows users to execute any strategies.
All vital trading tools such as Instant execution, Market and Pending orders, and chart trading are available. Additionally, it provides three execution modes, two market orders, two stop orders and four pending orders.
The Analytics functions are one of the best MT4 features. Users can use online quotes and interactive charts with nine periods to examine quotes in all details. Users’ task is simplified by 30 built-in technical indicators and 23 analytical objects.
Users can set up automatic trading by copying deals from other traders. One only needs to select their provider, subscribe to their trading signal and leave the terminal to use the signals. The platform provides thousands of free and paid trading signals and a demo account to ease trading for all users.
MT5 is one of the best trading platforms in 2021 as it provides multi-asset options, namely, futures, forex and stock. The platform contains superior tools to copy trading signals, analyze prices and use algorithmic trading applications.
Users can open multiple trading positions for a single financial instrument, either in the same or opposite direction. Four order execution modes meet different objectives, including exchange, market, request and instant execution. Additionally, MT5 supports all types of trade orders, namely trailing stop, market, pending and stop orders.
Traders can use such a diverse set of execution modes and order types to employ effective strategies to succeed.
The platform offers impressive tools for analysis. Users can open up to 100 charts of currency at the same time. Moreover, users can forecast price dynamics using the fundamental analysis tool on the platform.
The recent political and economic events, such as the new stimulus package offered by the new administration have negatively affected the US economy, causing increased inflation. Traders are best to remain updated on relevant news and use reliable trading platforms.
*This is not financial or investment advice. Remember to do your own research and speak to a professional advisor before parting with any money.