Trading in transition: trends & opportunities in the forex markets

“We are observing several notable trends and developments,” says Martina Zimmerl, Head of Group Capital Markets Sales. “On the one hand, there are technical developments like the so-called algorithmic trading. Algorithms and automated trading systems are becoming increasingly popular on the foreign exchange market. The clear advantage is the faster and more efficient execution of transactions.” On the other hand, there are also legal measures that have an impact on the market, according to the expert: “The foreign exchange market is subject to constant regulatory changes. The authorities want to increase transparency with new rules and regulations in order to protect customers.”

“Companies and financial institutions can gain an overview of developments on the foreign exchange market by keeping an eye on the latest news and analyses from reputable sources. Market trends and movements can also be tracked using analysis tools,” says the specialist. Industry conferences and events also provide information on the latest developments and enable networking with other professionals. “RBI helps its customers to understand the market by providing regular updates and reports on the state of the foreign exchange market and offering advice and support on foreign exchange matters to companies and financial institutions.” The website www.raiffeisenresearch.com regularly provides up-to-date insights, especially on various countries and currencies or interest rates.

“Trends in the FX business can be both global and regional,” Martina Zimmerl explains. “While some trends have a global impact, such as digitalization, others are influenced by specific regional factors, especially in the CEE region. Understanding these regional nuances is crucial for corporate clients engaging in currency hedging transactions, as it allows them to navigate the complexities of local economies, regulations and geopolitical events that can have a significant impact on currency movements.”

“Despite increasing automation and internationalization in the foreign exchange market, local market knowledge is a strong competitive advantage,” she points out. “Local news and information sources often provide valuable insights and trading opportunities that may not be available to traders without local market knowledge. The ability to interpret and respond to local market dynamics is critical to a successful corporate FX hedging and risk management strategy.”

The human factor is also important in FX trading: “Our expertise also includes understanding the local culture and particular business practices. This is always a great advantage when building relationships and doing business on the local foreign exchange market.”