Forex Markets Are Seeing Incredible Moves

Editor’s Note: Today, we’re featuring a guest essay from colleague and professional currency trader, Imre Gams. Stocks and bonds suffered last year, but currency traders are cheering.

That’s because—as Imre says—the recent action in currency markets is unlike anything he’s seen, and so are the trading profits.

Read on for more. And if you enjoy Imre’s work, we encourage you to join him next Thursday for a special market briefing. Reserve your spot with one click right here.

Dear Reader,

My name is Imre Gams. I know I might be a new name to Brownstone Research readers. But—if you’ll allow me— I’d like to show you an incredible market event unfolding right now, and hardly anybody sees it…

If you hear nothing else from me, please know this: We are in the middle of the biggest profit opportunity I have seen in my lifetime.

And it has nothing to do with stocks, bonds, or cryptocurrencies…

You see, I’m a professional forex trader, also known as a currency trader. And I have never seen a currency market like the one we are witnessing today.

In the next three minutes, I’d like to show you what is happening in the currency markets, why it’s happening now, and how my readers are using this environment to secure incredible trades.

But first things first…

How Currency Trading Workss

We can think of trading forex as buying and selling shares in the economy of a country.

When you’re buying the Swiss franc, for example, you’re kind of buying a tiny share of Switzerland.

And here’s the thing about currencies… they’re always traded in pairs.

That’s because the value of one currency can’t exist in a vacuum.

If you’ve ever gone on vacation and exchanged your dollars for the local currency, then that’s a forex trade.

Of course, when we’re exchanging money as a tourist, we aren’t really focused on trying to make a profit.

But making profits from the exchange rate variations that happen every day is exactly what I do as a professional trader.

And the profits can add up very quickly. Over $7 trillion moves through the forex markets every single day.

As a forex trader, my job is to capture even the smallest piece of that pie.

Now, currency trading is typically avoided by retail traders. After all, trading currency pairs is not as straightforward as trading equities. And maybe in more “normal” markets, investors could avoid currency trading altogether.

But these are not normal markets. As Jeff Brown has been sharing with you, 2022 was a historically bad year for stocks and bonds.

At the same time, the movements we’re seeing in the currency markets are almost unbelievable…

A Market Unlike Any Other

Big swings in stocks have become common, but currency markets are not known for their volatility. Moves in currency pairs are typically measured in “pips.”

With the exception of the Japanese yen, a pip refers to the fourth decimal place on an exchange rate quote. That’s how incremental currency movements usually are. If a currency pair moves several percentage points in a short period, it’s a big deal.

And as I said, the recent moves in the currency markets are almost unbelievable.

Perhaps the best example is the JPY/USD pair. That measures the Japanese yen relative to the U.S. dollar.

And as the chart below shows, at one time last year, the dollar had strengthened 23% relative to the yen.

A 23% move might not sound like much, especially if we’ve only invested in stocks. But for currency traders, it was a sight to behold.

The best comparison I can think of is if a large-capitalization company soared hundreds of percent in just a few months. I had never seen anything quite like it.

And with the way forex trading works, those gains can work out to hundreds of percent as well.

This type of movement from a currency pairing isn’t just rare, it’s virtually unprecedented outside of cataclysmic economic events like a sovereign debt crisis.

So, why is this happening?

Rising Rates Create Wild Swings

As I’m sure we all know, America’s Federal Reserve is in the process of aggressively raising rates in an attempt to control inflation. And the Fed has been hiking rates higher and faster than any other time in recent history.

The Fed is just one of many central banks. But because it is America’s central bank—which happens to issue the world’s reserve currency—its actions have an outsized impact on the currency markets.

Capital will always go where it is treated best. And if investors can get better yield from their dollars relative to other currencies, that’s where they’ll go.

As the Fed hiked rates last year, we saw a historic run for the dollar relative to other currencies. The U.S. dollar Index tells the story.

At one point last year, the dollar had soared nearly 20% relative to its peers. Again, that might not sound like much to a stock trader. But for currency traders, it was almost unbelievable.

I like to think of currency trading as a “tug of war,” where two currencies are battling against each other. As a currency trader, our goal is to end up on the side that pulls harder. And in all my time as a forex trader, I have never seen a tug of war so dramatic.

And of course, this means incredible trading opportunities for those of us willing to take the plunge.

While Stocks Suffer…Currency Traders Cheer

With stocks, bonds, and cryptos struggling, it seems like currency traders are the only ones with something to celebrate. And I’m happy to say my readers are among them.

Last October, I launched a new research product that spots these currency trading opportunities. And I’m happy to report that—of our 21 trades—20 of them were winners.

That’s a 95%-win rate during one of the worst periods for stock market investors in more than a decade. Among the trades—assuming a $4,000 stake—some of our winners gave readers the chance to collect profits of $1,700 in a day… $1,694 in a day… $2,239 in 6 days… and $3,700 in 9 days…

Again, these aren’t back tests. They’re not hypothetical examples. They’re real trades that we issued in my service, Currency Trader.

And based on what I’m seeing, I believe we have another exciting year ahead of us.

That’s why I’d like to invite you to a special event I’m hosting on February 9 at 8 p.m. ET. On that day, I’ll share my next live trade recommendation, and I’ll reveal why I believe we’re entering a “golden age” for currency traders.

Even if you’ve never considered currency trading, I’d encourage you to attend. It’s completely free, and I’m certain it will be worth your time. You can reserve your spot with one click right here.

Happy trading,

Imre Gams

P.S. And be sure you keep an eye out for my next insight next week. I’ll show us some of the “monster trades” from forex history that minted trading legends. I’ll speak to you then.