Effective risk management is crucial in Forex trading to protect your capital and minimise potential losses. To manage risks, you should educate yourself, use demo accounts, and stay updated on market developments. Emotional reactions and leverage can increase risk, so it is important to have a clear strategy and use tools such as stop-loss orders and negative balance protection.

If we see a continuation or escalation of hostilities, expect gold, oil, and the USD to push even higher

We can now expect a relatively rapid reduction in interest rates for all major currencies and a period of increased volatility.

Any significant volatility will come from the ECB’s forward guidance, with big question marks over further cuts in October and December.

The odds of a 50-bps rate cut on September 18th have risen. Uncertainty is the market’s worst nightmare; whatever the decision is, we will see serious volatility.

Recent developments have forced the USD lower as a September rate cut looks certain, but will the cut be 25bps or 50? And will Powell’s speech shed any light?

Today’s surprise data put paid to the dollar’s fall, with retail sales up 1% vs 0.3% expected – the biggest increase since January 2023.

As we head into the end of the week, Monday's panic seems like a bad dream. However, markets are very nervous and expect more data-driven volatility over the coming months.

Given the high probability of a US rate cut in September and the uncertainty in the EU, the price of the EUR/USD will likely remain dependant on EU data, rather than events in the US.

With interest rates now likely to come down at least twice and possibly three times this year - and Biden’s bid for a second term looking weaker than ever - gold prices are likely to remain elevated.

The USD nosedived, and the chances of the Federal Reserve cutting interest rates in September received a major boost today as US CPI figures showed a further fall in inflation.

The GBP looks set for further gains over the coming weeks, especially considering any further weakness in the US economy. However, this may not translate into long-term gains for the EUR/USD.

Whatever happens, the USD/JPY pair is set for further volatility. The BoJ’s previous interventions have seen moves of over 500 pips, so prudent risk management is especially important.

Central banks are less concerned about the price of gold. Their purchasing priorities are now set by the long-term political goal of independence from the USD.

It’s been a wild week in the markets. After weeks of relatively low volatility, Friday’s NFP release kicked off a rollercoaster ride for traders.

If the US economy continues to show signs of a slowdown, increasing the chances of a September rate cut, we could see a ranging market for the EUR/USD.

The pressure on the ECB to lower interest rates in its June 6th meeting is immense, and the market is fully expecting a cut.

After the CPI figures were released, the chances of a September rate cut increased to 72%, with a July rate cut not out of the question either, with a 35% chance.

The good news is the expectations of divergence in rates have brought renewed volatility and volume to the Forex markets.

The fourth Bitcoin halving since its launch in 2009 occurred a few weeks ago, on the 19th of April.

But it does seem like the Bank of Japan has drawn a line in the sand, so JPY bears are cautious

As long as retail, governmental, and institutional investors remain wary of riskier assets, we can expect gold prices to remain elevated.

However, with so many central banks expressing concerns over the dollar's strength, many market players seem to be in profit-taking mode, which has seen the DXY stall at 105.97.

With rhetoric from policymakers in the US now surely more hawkish, there seems to be a generous upside for the USD vs. all major currencies in the coming months. 

OPEC forecasts that 2024 will see overall demand increase by 2.2 million barrels per day, with a 1.8-million-barrel increase in 2025.

In February, Saxo Bank reported a monthly Forex trading volume of $92.4 billion, down from $106.7 billion in January and a huge decline from $134.8 billion in December 2023.

Scams on messaging services like Telegram and WhatsApp are a growing threat, as clone brokers and fake signal providers proliferate. 

Any moves above the 1.0860 level could see the 1.0900 psychological level come into focus, and beyond that, traders will be eyeing the 1.0950 level.

Optimism abounds and concerns over scandal and fraud are fading, but traders need to be aware that cryptocurrencies are extremely volatile and almost completely reliant on trader sentiment for price changes.

A look at three recent scams in a bit more detail to understand how these scams work and what we, as traders, can do to avoid them

Markets predicted that the Bank of England would keep rates on hold today, which they did. This leant temporary support for the GBP/USD but will also put further pressure on the beleaguered economy.

A raft of other US economic data released at the same time were more mixed. Initial and continuing jobless claims both increased, and inflation for final prices of goods and services came in much lower than expected.

Traders are advised to keep a close eye on data coming out of the US, as well as any forward-looking statements made by policymakers on both sides of the Atlantic

Markets are still expecting/hoping for a cut in interest rates in March, though with the CBE Fedwatch tool showing a 65% probability this is still very uncertain.

As traders, we always look for trading opportunities, which are usually more abundant in volatile or quickly moving markets. Gapping markets often present very good trading opportunities, depending on the gap type.

Less than two months after the European Central Bank (ECB) failed to convince markets that it may raise interest rates again this year, the US Federal Reserve finds itself in the same boat.

XTB is one of our favourite brokers and rates highly in all categories. In this video, Alison walks traders through the categories, starting with the company info and regulation, available instruments, trading platforms, trading costs, education, and customer service. 

Traders should be wary; the main actors in this conflict's long and bloody history are not known for their restraint, and all wars are unpredictable by their nature.

Channels are powerful technical analysis tools that help traders identify buy and sell signals, and where to place stop-losses and take-profits.

Following the successful rebranding of legacy sites in South Africa, India and Australia, Forex-Malaysia becomes the latest regional site to come under the wider FxScouts umbrella.

But with a US recession now looking likely and the EUR/USD heading deep into oversold territory, the outlook for 2024 is much less clear.

Balancing full-time work and trading requires discipline, dedication, and a solid trading plan. By following these tips, traders can succeed in their trading activities while balancing their full-time work.

The GBP is trading at a 6-month low against the USD and the EUR following the Bank of England’s decision to hold interest rates steady at 5.25% on Tuesday, 26th September.

The Head and Shoulders Pattern is a multi-candlestick pattern that helps traders identify potential breakouts. One of the most reliable chart patterns, it has an 85% accuracy rate. Learn more about this chart pattern and improve your trading analysis.

Geopolitical consequences aside, the extension of the cuts raises questions for central banks in their efforts to tackle inflation, the US Federal Reserve in particular.

The USD/ZAR has been on a wild ride this summer, and with the US Federal Reserve’s unclear stance on interest rates and the flagging Chinese economy, the turbulence is not over.

The cryptocurrency industry has rolled from crisis to crisis for almost a year now. With multiple pivotal events approaching that will define the future of the asset class, what could be in store for the market?

In this video, we cover how to calculate your risk-reward ratio, provide plenty of examples of how risk and reward can inform your trades, and how to determine the right risk-reward ratio for your trading style.

Robust US data has made it difficult for the EUR/USD to recover. Having tested the 1.0900 psychological support handle and dropped below it, it looks like it will now test new support around the 1.08500 level.

The price of gold (XAU/USD) dropped after briefly touching resistance at $1,930.00, influenced by the consistent U.S. Consumer Price Index (CPI) results.

The 200-day MA is one of the most important technical indicators used to analyse and identify long-term trends. It's a line that represents the average closing price for the last 200 days and can be applied to any financial instrument. 

In a surprise aftermarket move on Tuesday, August 1st 2023, Fitch – one of the major debt rating agencies – downgraded US government debt to AA+ from AAA. 

Financial markets are extremely complex and trading successfully requires a lot of practice. Luckily, this is what demo accounts are made for - so don't miss out on this informative video that helps you get started with a demo account.

What are the top 3 mistakes Forex traders make? How can you reduce your losses? Alison will take you through the most common pitfalls in this informative video.

Following the ECB rate hike, the EUR/USD fell over 70 pips in an hour, heading strongly towards oversold territory after breaking the 1.2500 level last week.

For now, things are quiet. But as with all ranging currency pairs, things look more interesting from a technical standpoint.

In this review, Alison explains why FP Markets is ranked high on our list of Forex brokers. Alison will guide you through the various categories by which we rate brokers, so you can decide if FP Markets is the right Forex broker for you.

The DXY Dollar Index finished the day down -1.08%, its largest fall since January. The Dow jumped over 200 points before correcting later in the day.

A trend line is an important element of technical analysis that helps determine the current trend in Forex market prices. In this video, we will look at how to draw simple trend lines in order to define future support and resistance levels in the market.

With a July interest rate rise now all but locked in for the US, we can expect a continued upside bias for the USD vs other major currencies.

The best way to get started with Forex trading is to use a demo account. A demo account is usually available at most good brokers, free of charge so that you don't have to deposit any money to open one. 

Fibonacci retracement indicate the possible support and resistance levels where price could potentially pull back or rally, before continuing with a trend. In this video, we describe what retracements are, the benefits of trading a retracement, and how to use the Fibonacci retracement tool.

At the ECB Forum on Central Banking in Sintra, Portugal, central bank leaders were unequivocal on the need for further monetary tightening. The DXY surged with the EUR/USD and GBP/USD hit particularly hard.

Volatility in the GBP/USD pair is likely to continue as traders look to a second day of testimony from Jay Powell, Chairman of the US Federal Reserve Bank.

The Moving Average Convergence Divergence (MACD) is a crucial trading tool that offers insights into trend and momentum shifts, helping traders identify potential buy and sell points.

Inflation is expected to remain high in the UK, diverging from the Eurozone and USA, where inflation is falling rapidly. UK interest rates should continue to rise as a result, supporting the GBP in the short and medium term.

The EUR bulls are back in control of the EUR/USD and it is clear that the markets do not believe that the Fed is going to continue hiking interest rates in the medium term, despite the hawkish rhetoric.

Candlestick patterns are vital tools in technical analysis, providing detailed information about market sentiment within specific time frames. 

The current probability of a rate rise by the Fed is between 20-30%, so if there is a surprise increase, the EUR/USD will be hit hard and the DXY will make major gains.

Support and resistance levels are fundamental concepts in technical analysis that traders use to identify potential entry and exit points for trades, and for managing risk. In this video, we cover what support and resistance is, and methods for identifying these levels.

The EUR/USD rebounded above 1.07 on the news, and the DXY was broadly lower – erasing any session gains.

Weakness in the USD was short-lived due to better-than-expected inflation data from the Eurozone and the debt ceiling talks in the US.

Stochastic Oscillators are momentum indicators that provide valuable insights into market conditions. In this video, we cover the basics of what they are and how they are used.

With the US default looking less likely, traders are pulling out of the USD and beginning to look further ahead.

The implications of a US default for global financial markets, including the EUR/USD, are generating attention, particularly considering the US dollar's haven status.

SARB pivoted away from market expectations today, raising the interest rate by .5% and citing currency weakness.

Candlestick charts are a popular tool used in technical analysis to depict the price movements of financial assets. Traders and analysts use candlestick charts to identify patterns, trends, and potential reversals in price, providing valuable insights for making informed trading decisions.

The pressure on the rand is relentless, but some analysts are optimistic. Is this optimism founded in reality?

This week the Rand hit a new record low amid increasing loadshedding and US accusations that SA provided arms to Russia. Chris provides some insight on why the Rand has been so negatively affected, and speculates on its future movements.

In early March, eToro – the world’s largest social trading broker – announced that they were going to integrate TradingView – traditionally a sophisticated charting platform – directly into its own trading platform.

As expected, today's FOMC meeting resulted in a 25-basis point hike in interest rates. The market´s response was subdued; this hike had been priced in for some time.

The Relative Strength Index (RSI) measures the speed and magnitude of an asset's recent price changes to evaluate overbought or oversold conditions in the price of that asset. In this video, Alison explains the basics of the RSI and how to use it.

Bollinger bands are simple yet valuable indicators that provide Forex traders with dynamic support and resistance levels AND show price momentum. Check out Alison's tutorial and learn what Bollinger bands are and how to use them.

Many traders have their favourite technical indicators, and these indicators become part of their standard strategy. Moving averages (MAs) are used by the majority of traders for identifying trends and possible entry and exit points. In this video, we discuss what MAs are and how you can effectively incorporate them in a trading strategy.

Gold has become increasingly popular and is considered a safe haven in times of market volatility. Alison walks you through what it means to trade gold, what the difference is between trading and investing in gold, and some key points to keep in mind. 

All the major currencies were up against the US dollar following the latest CPI release. But the underlying data may wrongfoot the market in the weeks ahead.

Fears for the US economy continue to grow with job openings falling and a less-than-expected increase in private employment. But the USD has remained resilient.

Chris from the podcast Let's Talk Forex with Alison and Chris shares his latest analysis of the effects of the weak US jobs data ahead of Friday's NFP report.

The Non-farm Payroll (NFP) report is one of America’s most important economic announcements and affects everything from the Fed’s interest rate policy to the price of gold. We dig a bit deeper to get a better understanding of the NFP and how it can be traded.

Following the market chaos over the last two weeks, a relative calm has beset the markets. But the outlook for the USD remains uncertain as markets focus on monetary policy divergence in Europe and the US.

Chris from the podcast Let's Talk Forex with Alison and Chris shares his latest analysis of the effects of the Fed's March interest rate hike.

Understanding how to use timeframes correctly is essential for all Forex traders. Which timeframes are best for your trading style? And how do you use multiple timeframe analysis to reduce your risk and make better trading decisions?

The spread determines your trading cost and ultimately also determines your profitability. Understanding spreads is key to trading successfully.

Last week’s spectacular collapse of Silicon Valley Bank (SVB), closely followed by Signature Bank, has spooked the markets, raised the spectre of a bank run in the US and opened a Pandora’s Box of pressing questions and concerns.

A pip is the price move in a given exchange rate. Understanding pips is fundamental to calculating your profit and loss, and when to enter and exit a trade. In this video, we cover what a pip is and how pips are used.

Following a 6-month absence, the MetaTrader 4 and MetaTrader 5 trading apps are back on the app store for iOS devices.

The US dollar index fell to a 9-month low amid dovish comments from Fed Chair Powell that sent bond yields tumbling and sparked a rally in stocks, dampening demand for the dollar. The index lost -0.89% in yesterday’s trading.

In this video, we cover how Forex trading works, explain common Forex terminology and talk about the risks associated with trading.

Recent data releases in the US have surprised investors, with US economic growth remaining stubbornly resilient in the face of repeated interest rate increases by the Fed. But what does this mean for the markets in the mid-term?

Forex trading can be a lucrative and rewarding endeavour for those who are up for the challenge, but it also carries with it a certain level of risk. Unfortunately, many beginner traders make mistakes that can lead to significant losses.

Multiple news outlets are reporting today that OvalX (formerly ETX Capital) has sold its customer base to Capital.com, a major UK-based brokerage, and will be closing down.

Operations close, and rumours of layoffs point to an uncertain future.

The report highlights a record number of complaints, continued broker membership growth, and a decline in average compensation.

Predicting the DXY: Winter 22/23 Edition

The Rand has stabilised over the last 24 hours as investors were placated by better-than-expected GDP figures and a clear pathway to resolving the scandal engulfing President Ramaphosa.

Since 2011, cTrader has grown to become one of the most popular platforms in the world. It is praised by both beginners and experienced traders alike for its intuitive design. In this video Chris runs through how to use cTrader and shows off all its features.

Demo accounts are key to becoming a successful trader. In this tutorial we walk you through an MT5 demo account. To learn more about why demo accounts are so important, check out our podcast "Let's Talk Forex with Alison and Chris" on your favorite podcast app.

One of the most respected brokers in the world, Pepperstone wins our global Forex Broker of the Year award for its ongoing commitment to providing traders with low costs and the widest platform choice available.

Each year FxScouts and our sister sites in the FxScouts Group evaluate the world’s favourite Forex and CFD brokers.  We have worked with some of these companies for over a decade, and as 2022 comes to a close, we want to award the best of them for their accomplishments this year. Our independent and unbiased review process is the only basis for these awards.

Although the concept of leverage is relatively easy to grasp, it is very often misused. It is essential for beginners to understand how it increases their risk in Forex trading and how to use it responsibly.

If you are considering a career in Forex trading, you cannot ignore the statistics that show 60 - 90% of traders lose money. While this may seem discouraging, the main reason why most traders fail is that they don’t follow the simple rules of risk management.

Positional traders often ignore short-term price movements and prefer to rely on fundamental analysis​​ and long-term trends. They hold positions for months and sometimes even years. In this video we help you figure out if positional trading is the right trading style for you.

Day trading is suitable for forex traders that have enough time throughout the day to analyze, execute and monitor a trade but don't hold their trades overnight. This video covers the five rules of day trading and how you can find a broker to suit your day trading needs. Simply put, all you need to know to seize the day!

On Friday 23rd September 2022, Apple quietly removed MT4 and MT5, two of the world’s most popular trading platforms, from its App Store. While the abrupt takedown has gone mostly unnoticed, it has created a furore in the Forex trading community and has reignited long-held concerns over fundamental security flaws.

Like CFD trading, the history of cryptocurrency is also a turbulent one, albeit a shorter and noisier one. Without going into a potted history of cryptocurrency, it is safe to say that its most famous aspect is price volatility. Which is where CFDs and cryptocurrency enter an unholy union.

In this episode, Alison and Chris talk you through Scalping as a trading strategy. What is it? How does it work? 6 important rules to stick to if you want to scalp successfully, and how to pick the right broker if this is the trading strategy for you.

The GBP crashes as the new UK government scares investors, is this just another example of the USD’s strength causing chaos in currency markets? How long can the Dollar keep on rising and what does the market volatility mean for Forex traders?

We walk you through a scam Forex broker's site and show you some common indicators that this is not a real Forex Broker.

Checking a broker’s regulatory status is a simple process for all the major regulators. It only takes a few minutes and could save you a lot of money and heartache. A closer examination of the main regulators in the world is required, we are also going to discuss how to check if a broker is regulated.

There are a number of Forex-related scams enticing clients from Zambia, and we get emails frequently from traders who have been unable to withdraw money from their accounts or facing other forms of resistance from brokers whose sole purpose is to have clients deposit, and then refuse to refund the money.

As widely reported across the media landscape, Forex scammers and bad Forex brokers abound in Zambia. At FxScouts, we have been trying to understand how these scammers and bad brokers operate in the Zambian Forex ecosystem.

Online Forex trading is a relatively new phenomenon in Zambia – and one that is looked down upon as little more than gambling by many people.

Learn how Forex Trading works with our essential guide for beginners. Understand the terms used by Forex traders and learn how to make a successful first trade.