3. Stay Informed on Forex Market Drivers

In the forex market, several factors are influencing currency movements:

Central Bank Policies: Diverging monetary policies, such as potential rate cuts or hikes, are causing volatility. For instance, the European Central Bank's recent rate cut and cautious outlook on Eurozone growth suggest limited upside for the EUR/USD pair in the near term.

Geopolitical Developments: Trade negotiations and geopolitical tensions are impacting market sentiment. For example, the potential for escalating trade tensions remains a significant headwind for the euro.

Seasonal Trends: Historically, May has seen weakness in EUR/USD, GBP/USD, and AUD/USD pairs. However, developments on the trade and tariff front may override these seasonal patterns.

Keeping abreast of these factors can aid in making informed forex trading decisions.