Market Overview - Financial markets experienced volatility, starting strong but ending with uncertainty due to geopolitical tensions and regional bank issues [1] - The US dollar initially strengthened but softened after dovish signals from the Federal Reserve, while safe havens like the Japanese yen and Swiss franc saw inflows during market stress [2] Federal Reserve Insights - FED Chair Jerome Powell highlighted increased downside risks to employment and evidence of labor market cooling, despite delays in official data due to the government shutdown [3] - Powell maintained that long-term inflation expectations align with the 2% target and indicated the possibility of a quarter-point rate cut at the upcoming meeting [4] - He acknowledged that the Fed may halt quantitative tightening soon, with the balance sheet expected to remain larger than pre-pandemic levels due to higher demand for reserves [4] Currency Pairs Analysis - AUD/JPY has shown signs of bullish movement after finding support at previous levels, with a short-term target set around 102 [5][6] - The British pound has gained strength against most currencies, with a focus on its sustained range against SGD and potential breakout towards 1.76 [7][10] Economic Indicators - Canadian inflation has declined to approximately 3%, while UK inflation is expected to rise to 4%, influencing the strength of the pound and the Bank of England's rate decisions [11]

Group 1 - The article provides a step-by-step guide for selecting currency pairs based on different trading styles, emphasizing the need for alignment between trading style and currency characteristics [1][2][5]. - Day trading is characterized by short holding periods, relying on technical analysis for small profit margins, with recommended pairs including EUR/USD and USD/JPY due to their high liquidity and low spreads [2][4]. - Swing trading focuses on capturing medium-term trends over days to weeks, with suitable pairs like AUD/USD and GBP/USD driven by fundamental factors such as commodity prices and policy expectations [5][7][8]. Group 2 - Carry trade involves long-term positions to earn interest rate differentials, favoring high-yield currencies while managing exchange rate risks [12][15]. - Event-driven trading capitalizes on market reactions to economic data releases, with pairs like USD/JPY and USD/TRY being highlighted for their volatility during such events [4][22]. - Algorithmic trading strategies include statistical arbitrage, monitoring price discrepancies between currency pairs, and utilizing low-latency execution for optimal performance [14][15][26]. Group 3 - The article outlines a five-step self-assessment method for traders to evaluate their risk tolerance, time commitment, and tool compatibility when selecting currency pairs [17][19][21]. - Recommended currency pairs for different trading styles include EUR/USD and XAU/USD for day trading, AUD/USD and GBP/USD for swing trading, and AUD/JPY and USD/ZAR for carry trading, each with specific risk management parameters [21][22][23]. - Common pitfalls for novice traders include mismatching trading styles with currency pairs, overlooking overnight costs, and overtrading less liquid pairs [24][25][26].