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Published on January 28th, 2013 | by Guest Contributor

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Thriving in an Austere Market – How Forex Traders Can Gain a Critical Advantage

While the threat of recession and economic stagnation remains Omni-present across almost every nation, it is unusual for so many countries to experience such turbulence simultaneously. The current, global economic climate therefore provides something of an anomaly, as a number of regions continue to grapple with large scale debt and rising unemployment. This can make life particularly difficult for forex traders, especially if they are new to the market or without a well defined investment strategy.

As a result of this, forex traders are becoming increasingly reliant on advanced technical indicators and analytical tools to ensure the integrity of their transactions. This means that online brokerage firms are now playing a crucial role in empowering their clients, as they compete to develop and promote the very latest in cutting edge technology. Without this assistance, traders who lack the requisite experience may find themselves cut adrift within the bustling marketplace.

 

The Economic Climate: How is it Impacting on the Market?

The prevailing economic climate is certainly an uncomfortable one for investors, most notably because it continues to fluctuate violently from week to week. While the so-called ‘fiscal cliff’ was recently averted thanks to a last minute agreement made in Congress, this has done little to assuage anxiety among traders who have grown accustomed to economic tumult in the U.S.. Given that Congress members are likely to sign renewed extensions to the debt ceiling deadline, there are far more pressing matters troubling international currency traders.

Of far greater concern is the ongoing eurozone crisis, and more specifically the uncertainty that continues to surround it. While a number of economic experts appear to believe that the worst of the crisis is over after three long and arduous years of financial struggle, there are tangible reasons for investors to remain cautious. No matter how much the current market sentiment suggests that investor confidence is on an upward curve, there remains genuine doubt that the long term dissolution of the eurozone cane be avoided.

The latest GDP figures from Spain are sure to dampen any enthusiasm concerning a eurozone recovery, while even forecasts from the International Monetary Fund (IMF) have served as a reminder of the threat that is still being posed towards the single currency. The collapse of the Euro may yet prove to be the single biggest consequence of the financial crisis, and this of course would have a huge impact on forex traders across the world.

 

Europe and the UK: Heading for an Ugly Separation?

The relationship between Euro zone members and the UK continues to compound the economic crisis, particularly with the promise of referendum on EU membership scheduled for after the 2015 general election. There is a growing distance between the UK and its European cousins, especially in light of the fact that the Labour party have garnered support on the back of their anti-EU stance. This has forced the coalition to react, and promise to gauge the mood of British citizens before making a final decision.

While the withdrawal of Britain from the EU may ultimately have more of an impact on the domestic economy than that of the eurozone, the potential for further disruption to the region may be too much for investors to bear. By deciding to wait until after 2015, the coalition government are also running the risk of undermining both economies in the meantime. Given the already precarious state of the eurozone and the single currency, this development may encourage an increasingly risk averse approach from forex traders.

 

Alpari Squawk: Helping Traders to Execute Clear Decision Making

With the eurozone far likely to worsen before it improves, and given the potential impact of a fragmented EU, online brokers must play an increasingly significant role in assisting their clients. It is more important than ever that forex traders remain in touch with breaking news and economic trends, before using this information to improve the efficiency of their real time transactions. Fortunately, there are now a number of innovative tools available to help investors negate the ongoing economic instability.

Perhaps the most innovative of these tools is the recently unveiled Alpari Squawk, which has been designed as a dedicated audio stream that filters market movement information. As a result, users are fed breaking news and real time market analysis from professionals based in the city of London, which in turn helps to promote clearer thinking and more effective decision making. It is a product that is perfectly in tune with the volatility of the modern market, as it understands the traders need for a stream of consistent and reliable information.

 

In Summary – How Alpari Squawk Can Help International Forex Traders

While the latest innovation from Alpari cannot alter the economic condition or stabilise the financial markets, it can give traders a competitive edge by enabling them to execute clear and well founded decisions. Along with the use of technical indicators and a reputable online trading platform, Alpari Squawk provides targeted guidance to traders regardless of their knowledge base, strategy or level of market experience. With the global economy unlikely to mount a significant recovery any time soon it, this type of product is set to become a vital weapon in the forex traders armoury.

This article was brought to you by Andy Gough, an independent researcher within the Forex Market





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