Blog


3 Hot Forex Trades to look out for in 2018

Posted on March 20, 2018

The Forex market has the largest volume of the world’s trading, with people all over the world participating in it every day. The market never closes and remains opens at all times of the day, five days a week. Being fully accessible to anyone is just one of the reasons investors trade forex. The transparency of governments make forex markets a little easier to predict and trade than stock markets as companies are less open.


Here in the UAE, you have the unique advantage of waking up before the Euro and US markets. Perfect for those who like to trade in the forex markets as their side hustle. Picture this, wake-up, set up your trades for the day as you have your breakfast and then simply keep tabs on your trading from Mashreq Neo on your phone as you go about your day. No need for a broker or logging into complex online forex trading tools. With Mashreq Neo, it just requires a tap of your thumb.


So with that being said, what are the three currency pairs? You may have already guessed the first.



EUR / USD

One of the benefits of trading this currency pair is the high levels of liquidity which helps in the favourable execution of transactions. The US and Euro economies are also very transparent markets making them easier to trade and the pairing is historically a lot more predictable than other currency pairs.


Both currencies had a good 2017 with the US market performing particularly well amidst reports of corporate tax cuts. A look forward to 2018, keep your eyes peeled for the US tax plan. The US Dollar could scale to new heights if The President’s fiscal stimulus takes ahold. In Europe, a delay by the ECB (European Central Bank) in tapering off interest rates might prove bearish for the EUR.


GBP / USD

You may be tired of hearing about Brexit but 2018 offers some great opportunities to forex traders as the UK government tries to negotiate a successful departure from the European Union, scheduled to take place on March 29th, 2019.


The British government are hoping to complete a deal by October 2018. What this deal looks like, nobody seems to know. This uncertainty will continue to pull Sterling in both directions creating ample opportunities for traders to catch a trade in either direction.


Also in store for the UK is the possibility of a further rate hike, likely by September 2018. Expect a bit of volatility as traders try to price in the potential rate hike.


With a devalued currency, the UK is well equipped to negotiate new trading relationships with both the EU and the rest of the world.


USD / CHF

It's a good idea to familiarise yourself with the famous Swiss Franc as it has historically been used as a 'safe haven' in times of bad news and crises in the world. January saw exactly this as the global stock markets took a tumble which resulted in the Swiss Franc making an unexpected rally. It’s for this reason, it is always a good idea to keep one eye on this currency pair so that you’re familiar with the trading pattern and ready to pivot towards it at a moment’s notice and few taps of your thumb!


Mashreq Neo helps you trade Forex

Mashreq Neo offers a truly seamless experience for forex trading here in Dubai. With the widest range of Forex trading account features in the region, Mashreq Neo offers unparalleled trading convenience for its users! Here are just a few of the features:


● One-click setup

● Live FX rates

● Competitive purchase price

●  Buy Forex online from an online Forex broker

●  Convert your Forex to cash whenever and wherever you want



Disclaimer: This article has been prepared solely for information purposes. It does not constitute an investment advice, solicitation, offer or personal recommendation by Mashreq, or any of their related parties to buy or sell any securities, product, service or investment or to engage in or refrain from engaging in any transaction, particularly, in any jurisdiction where such an offer or solicitation would be illegal. Neither Mashreq nor any of their related parties warrant the accuracy of the information provided herein and views expressed in this article reflect the personal view which does not take into account of individual clients’ objectives, financial situations or needs. Investors are required to undertake their own assessment and seek appropriate financial, legal, tax and regulatory advice to determine whether such investment is appropriate for them in light of their experience, objectives, financial resources and other relevant circumstances. Neither Mashreq nor any of their related parties accept any liability whatsoever for any direct, indirect, consequential or other loss arising from this article and/or further communication in relation thereto. Mashreq do not accept any obligation to correct or update the information in this article.