Currency Charts: USD to HUF

The given currency pair can be classified as a peripheral asset. It’s not popular with market participants. However, it doesn’t mean that you can’t gain from it. For this purpose, you should adequately approach this currency pair and work out an effective trading strategy. What’s more, the Hungarian forint is hugely volatile.

Key information

The greenback appears to be the primary currency of the Forex market. That’s an essential component of many Forex assets except for cross-pairs. The Federal Reserve issues the evergreen buck. This major bank does everything required to stabilize the primary American currency. Fed meetings are responsible for enormous market volatility. You need taking into account the dates of Fed meetings when creating your trading strategy.

The US economy leads in terms of size. Among the principal trade partners of the United States, we can see China, Canada, and the European Union. The greenback boasts the status of a reserve currency. It’s widely used for international payments.

Hungary appears to be one of few countries, which managed to preserve its monetary units having joined the European Union. However, it created many difficulties for this European country. For example, companies trading in the domestic European market prefer to keep their assets outside of Hungary.

The Hungarian economy isn’t ranked high in the region. In terms of economic strength, this country can’t outperform Poland and the Czech Republic. In an attempt to make the Hungarian economy competitive, many local businesses have reduced their employees’ wages that generated a bunch of economic issues.

As for the Hungarian GDP rally, it’s slow enough. The national currency shows a strong reaction to any event, even if it doesn’t relate to it. However, these features attract investors. The essential advantage of this currency pair is high volatility.

How to trade

The currency pair has an unpredictable nature, ideally suited for scalpers. In this case, long-term and medium-term strategies can hardly work. You’d better rely on the short-term plans.

Some news predictably influences the currency pair USD/HUF. For example, these are GDP, the unemployment rate, and any changes in the interest rate set by the country’s principal bank. News from the United States also influences the forint quotes. You should monitor America’s key macroeconomic indicators to be aware of the market situation.

To make a profit from this currency pair, you need to combine technical and fundamental analysis properly. The given approach will enable you to work out a good trading strategy. Moreover, you should determine trends in different timeframes. Make use of technical indicators for better clarity. Thus, you’ll timely notice changes in market trends. For this purpose, you can effectively utilize moving averages.

Furthermore, you require closely watching other currency pairs, such as CHF/USD, EUR/USD, and GBP/USD. Pay special attention to any news relating to the evergreen buck because all currency pairs where it’s already included react to this. Furthermore, you require wisely using leverage. Never sacrifice more than 10% of your trading deposit.

 

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