Forex Currency Broker, Forex Currency Market, Forex currency trading, U.S.Dollar, Alternative Investments, Investment Strategies


FXITG.COM

Managed Forex Service

Forex Fundamental Currency Trading

Forex Introduction

Why Trade Forex

Advantages of Forex

Forex Video Play List
News & Commentary

Forex vs. Equities

Metals Market


About Us

Forex Trading

Request Information

Open Account

Support

Forex Currency Newsletter

Forex Metals Newsletter

Contact Us

Forex Links

Privacy


Risk Disclaimer

 

US Currency, The Dollar, EURO, Forex Currency News, Forex Currency Market



 
 
Managed Forex Service
 

  

         


Fundamental Analysis That Influence Forex Currency Trading

 

If interest rates are higher in the United States than in other countries, then investors WILL choose to invest in the U.S, increasing demand for the dollar, provided that the expected rate of inflation is not higher in the U.S than among our trading partners. If INTEREST rates are LOWER in the U.S than in other countries, investors will choose NOT to invest in the U.S, decreasing demand for the dollar.

If the US INFLATION rate is HIGHER, investors are LESS likely to prefer the U.S even with higher interest rates- because of the expectation that the value of the dollar will be ERODED by inflation. If our INFLATION rate is LOWER, investors are MORE likely to prefer the U.S, because there will be NO expectation that the value of the dollar will erode.

Trade balance also has an effect on a country's currency. If world prices for what a country exports rise in comparison with the cost of that country's imports, that country will be earning more for its exports than it pays for its imports. The more demand there will be for that country's currency, the better the deal becomes. If investors are confident that the U.S economy will be strong, they will be MORE likely to buy American assets, pushing UP the dollar's value. If investors are not so confident that the economy will be strong, they will be LESS likely to buy the country's assets, pushing the dollar's value DOWN.
 

Here Are A Few Examples



Forex Currency Market, Currency Broker, EUR/USD  Forex Currency Market, Currency Broker, EUR/USD  EUR/USD: If for example, a Forex currency broker believes the US economy will continue to fall and that will hurt the U.S. Dollar, a Forex currency broker would choose to buy the EURO, expecting the EURO to go up against the U.S. Dollar. On the other hand if a Forex currency broker chooses to sell the EURO, he would be expecting the EURO to go down against the U.S. Dollar. 


Forex Currency Market, Currency Broker, EUR/USD    USD/JPY: If for example, you think the Japanese government is going to deliberately weaken the yen in order to help its export industry, you would choose to buy the U.S. Dollar, expecting the U.S. Dollar to increase in value against the yen. If you see Japanese investors are pulling money out U.S. financial markets and repatriating their funds back to Japan, you would choose to sell the U.S. Dollar, expecting the yen to strengthen against the U.S. dollar as Japanese investors sell their U.S. assets and convert their Dollars to yen.


  Forex Currency Market, Currency Broker, EUR/USD  GBP/USD: If for example, you believe the British economy will continue to be the leading economy among the G7 nations in terms of economic growth, thus causing the British pound to go up, you would buy the pound, expecting the pound to strengthen against the U.S Dollar. If you believe the British are about to commit them selves to adopting the Euro, you would sell the pound, expecting the pound to weaken against the U.S. Dollar as the British devalue their currency in anticipation of merging with the Euro.
 

Learn How to Make The Forex Currency and Gold Market A Part of Your Investment Portfolio