Two Strategies That Will Continue To Do Well

Two strategies that will continue to do well in the forex market are:

1. Selling of High Yield Currencies
High yield currencies such as AUD, NZD, EUR and GBP have been depreciating for the past 5 months. Reason is because United State is almost done with its interest rate cut, but not for Australia, New Zealand, Europe and UK. Hence due to interest rate differential, these high yield currency will fall.

2. Buying Japanese Yen
For the past 5 years carry trades have been very profitable. Traders have borrowed (sell) Japanese Yen at near zero interest rate and lent (buy) at 5% - 7% in AUD, NZD, EUR and GBP. But due to weakening of global economy, traders have started to unwind this trade. Meaning buying Yen and selling the high yield currencies.

To tap on these strategies, traders can short sell AUDUSD, NZDUSD, EURUSD, GBPUSD and USDJPY in forex trading platform OR buying "Under" in option trading platform.

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