-24,880 USD: Accelerating Rate Cuts by the ECB and the Outlook for the Euro: Key Forex Strategy
The trades from October 7 to October 11 ended with a loss of -24,880 USD. Amid uncertainty regarding the direction of the US dollar, I focused on trading the EUR/USD and USD/JPY pairs, but the lack of price movement resulted in losses. Moving forward, I plan to reduce the number of trades further and proceed with caution.
Upcoming Focus Points
- Expectations for Accelerated ECB Rate Cuts
The European Central Bank (ECB) is projected to lower policy rates to 2% by the end of 2025 as part of its economic stimulus measures. This is expected to keep the euro under pressure, and I will aim to sell during any upward movements. - Stability of the US Dollar and Neutral to Buying Bias
With US economic indicators showing stability, the dollar is expected to trend towards buying from a neutral position. I will need to closely monitor market movements based on economic indicator results. - Neutral to Selling Bias for the Japanese Yen
With the Bank of Japan likely to forgo additional rate hikes, yen selling is anticipated to progress. If there is increased downward pressure on the yen, I plan to take advantage of upward movements in the USD/JPY pair.
Currency-Specific Strategy Points
| Currency | Direction | Strategy Points |
|---|---|---|
| US Dollar (USD) | Neutral to Buy | Consider buying if economic indicators show stability. |
| Japanese Yen (JPY) | Neutral to Sell | Respond to increased downward pressure on the yen by selling. |
| Euro (EUR) | Sell | Aim to sell during upward movements. |
| Australian Dollar (AUD) | Buy | Supported by the RBA’s hawkish stance. |
| New Zealand Dollar (NZD) | Sell | Watch for continued potential for further rate cuts. |
| South African Rand (ZAR) | Neutral to Buy | Stable movement backed by political and economic stability. |
| British Pound (GBP) | Neutral to Sell | Selling response due to indicated tax increases affecting economic risks. |
| Canadian Dollar (CAD) | Sell | Caution regarding the instability of economic indicators and oil prices. |
Amid the ongoing impacts of ECB rate cuts and the monetary policies of the US and Japan, I will continue to engage in careful risk management and flexible responses to market movements.
Afterword
Success in trading relies not only on technical strategies but also on physical and mental health. In particular, eye health is crucial for traders who spend long hours in front of screens. By ensuring that you get the necessary nutrients from daily meals, you can support your vision and maintain focus during extended trading sessions.
For example, fish like salmon are rich in omega-3 fatty acids, which contribute to eye health and retinal function. Egg yolks contain vitamin A and lutein, which help reduce the risk of macular degeneration and cataracts. Other effective foods for maintaining vision include almonds, carrots, and oranges.
For those of you who heavily use your eyes during daily trading, actively incorporating these nutrients and scheduling regular eye exams every 1 to 2 years, along with taking appropriate breaks, will be key to sustaining a healthy trading life.
I hope you continue to prioritize your health while achieving fulfilling trading results.
