Major currency movements in 2024

Currency markets in 2024 will be marked by several major movements and themes, driven by economic data releases, geopolitical developments and shifts in monetary policy around the world. Here are some notable trends:

1. US Dollar Strength and FlexibilityThe US dollar has shown resilience amid uncertainty, supported by the Federal Reserve’s monetary policy stance and strong economic indicators. Traders have been closely watching the US dollar against major currencies such as the euro, Japanese yen and British pound.
2. Uncertainty in the EurozoneThe euro faced challenges due to economic uncertainty in the eurozone, exacerbated by geopolitical tensions and inflationary pressures. Traders examined the euro’s movements against the US dollar and other safe-haven currencies.
3. Emerging Markets VolatilityEmerging market currencies, including the South African Rand (ZAR), Turkish Lira (TRY), and Brazilian Real (BRL), have experienced volatility, influenced by local economic conditions and global market sentiment.
4. Commodity price volatilityCommodity exporting currencies such as the Australian dollar (AUD), Canadian dollar (CAD) and Norwegian krone (NOK) have been sensitive to fluctuations in commodity prices and global demand.

In Kenya, forex traders have shown particular interest in currency pairs that reflect global economic trends and regional dynamics. The following currency pairs are among the most focused on by Kenyan traders in 2024:

1. EUR/USD (Euro vs. US Dollar)The EUR/USD pair receives significant attention due to its impact on global markets and its influence on trade and investment flows that affect Kenya’s exports and imports.
2. GBP/USD (British Pound vs. US Dollar)Traders in Kenya closely watch the GBP/USD pair for insights into British economic policies and their impact on trade relations between Kenya and the UK.
3. USD/JPY (US Dollar vs Japanese Yen)The USD/JPY pair reflects global risk sentiment and economic policies in Japan, influencing Kenyan traders’ strategies in response to broader market trends.

Forex trading offers great opportunities for Kenyan investors, but it is essential to choose a locally licensed broker like Exness for several reasons:

Regulatory Compliance and Investor ProtectionLocal brokers operate under the supervision of regulatory bodies such as the Capital Markets Authority of Kenya. This ensures adherence to strict financial standards and provides investors with redress in the event of disputes or irregularities.

Money SecurityTrading with a locally licensed broker ensures that investors’ funds are kept in segregated accounts and protected from misuse or mishandling. This enhances transparency and trust between the broker and the trading community.

Local support and accessibilityKenyan traders benefit from local customer support and services tailored to their needs, including educational resources, seminars and market analysis provided by locally licensed brokers like Exness.

Ken Van Dam, Acting Regional Marketing Team Leader ExnessHighlights the benefits: “Trading forex with a locally licensed broker like Exness ensures Kenyan traders have access to a safe trading environment regulated by local authorities. This not only protects investors, but also enhances their trading experience with local support and insights.”

Although Forex trading offers the potential for profit, it also carries risks due to market volatility and leverage. Effective risk management strategies include:

• Setting stop loss ordersExecuting stop loss orders helps limit potential losses by automatically closing positions at pre-defined levels.
• Diversification of investmentsSpreading investments across different currency pairs reduces exposure to individual market risks.
• Stay informedKeeping up with global economic events and market news helps traders make informed decisions and anticipate market movements.
• Leverage ManagementUsing leverage carefully ensures that traders are able to amplify potential gains while minimizing the risk of large losses.

In short, 2024 has been a year of significant currency movements and trends globally, impacting forex traders in Kenya and beyond. Major currency pairs such as EUR/USD and GBP/USD have been pivotal in reflecting global economic dynamics and influencing trading strategies in Kenya.

As Kenyan traders continue to take advantage of forex opportunities, with licensed brokers like ExnessAdhering to effective risk management practices and leveraging the expertise of local brokers will be instrumental in achieving sustainable trading success in the evolving global landscape.