There are a variety of factors that affect currency markets levels on a minute-to-minute basis. This consists of inflation data, gross domestic product (GDP), interest levels, unemployment, supply, demand, political changes, and broader economic forces, amongst others.
Complicating this are some general market trends, which were determined historically to exist. Like their share-price-based brothers, these currency markets anomalies might provide buying opportunities for investors. These anomalies include:
These regularities permit you to better time your investments in the short-term. Although investors should understand that over the longterm the advantages of a normal investment plan (investing every month) far outweigh the advantages of attempting to time your investment by way of a day or two, the next patterns have already been proven to occur.
Investors should understand that don’t assume all anomaly happens each time, but making certain you’re alert to anomalies will help you to profit on the long-term and cope with market volatility in the short-term. In a nutshell, benefit from these anomalies, but don’t try to utilize these anomalies at the trouble of one’s long-term investment objectives.