Major currency movements in 2024

The currency markets in 2024 have been marked by several key movements and themes, driven by economic data releases, geopolitical developments, and shifts in monetary policies across the globe. Here are some of the notable trends:

1. USD Strength and Resilience: The US dollar (USD) has shown resilience amidst uncertainty, bolstered by the Federal Reserve’s monetary policy stance and robust economic indicators. Traders have closely monitored the USD against major currencies like the Euro (EUR), Japanese Yen (JPY), and British Pound (GBP).
2. Eurozone Uncertainty: The Euro (EUR) has faced challenges due to economic uncertainty in the Eurozone, exacerbated by geopolitical tensions and inflationary pressures. Traders have scrutinized Euro movements against the USD and other safe-haven currencies.
3. Emerging Market Volatility: Emerging market currencies, including the South African Rand (ZAR), Turkish Lira (TRY), and Brazilian Real (BRL), have experienced volatility influenced by domestic economic conditions and global market sentiment.
4. Commodity Currency Fluctuations: Currencies of commodity-exporting countries 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 a particular interest in currency pairs that reflect both 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 attracts attention due to its influence on global markets and its impact on trade and investment flows affecting 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 UK economic policies and its implications for trade relations between Kenya and the United Kingdom.
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 substantial opportunities for Kenyan investors, but it’s essential to choose a locally licensed broker like Exness for several reasons:

Regulatory Compliance and Investor Protection: Local brokers operate under the oversight of regulatory bodies such as the Capital Markets Authority (CMA) in Kenya. This ensures adherence to strict financial standards and provides investors with recourse in case of disputes or irregularities.

Security of Funds: Trading with a locally licensed broker ensures that investor funds are held in segregated accounts and protected against misuse or mishandling. This enhances transparency and trust between the broker and the trader community.

Local Support and Accessibility: Kenyan 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 Damme, Acting Regional Marketing Team Lead at Exness, highlights the advantages: “Trading forex with a locally licensed broker like Exness ensures that Kenyan traders have access to a secure trading environment regulated by local authorities. This not only protects investors but also enhances their trading experience through localized support and insights.”

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

• Setting Stop-Loss Orders: Implementing stop-loss orders helps limit potential losses by automatically closing positions at predetermined levels.
• Diversifying Investments: Spreading investments across different currency pairs reduces exposure to individual market risks.
• Staying Informed: Keeping up with global economic events and market news helps traders make informed decisions and anticipate market movements.
• Managing Leverage: Using leverage cautiously ensures that traders can amplify potential gains while minimizing the risk of substantial losses.

In summary, 2024 has been a year of significant currency movements and trends globally, impacting forex traders in Kenya and beyond. Key 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 capitalise on forex opportunities, with licensed brokers such as Exness, adherence to effective risk management practices and leveraging local broker expertise will be instrumental in achieving sustainable trading success in the evolving global landscape.