Let’s backtrack a bit into forex history, not to long ago, the Swiss National Bank (SNB) had their currency pegged to the Euro with an exchange rate of 1.2000 in the EURCHF as a boundary. The SNB vowed to defend this level at all costs and interfere in the forex market with its vast currency reserves in order to prevent the exchange rate from dropping below the 1.2000 level. This became one of the most defended and openly communicated levels in financial history. Each time the EURCHF exchange rate approached 1.2000, the SNB stepped in pushed...
In the global foreign exchange market, retailers, investors, speculators, and institutions determine the relative value for the conversion of one currency to another via the buying a selling of currency pairs. There are a number of methods used by forex traders to predict the movements of currency pairs. Some traders focus on news, interest rates, and economic variables while others prefer to use charting tools and indicators to guide their trading decisions. However, no matter your trading method, you will need to know how to read a forex...
Just because forex is easy to get into doesn’t mean that due diligence can be avoided. Learning about forex is integral to a trader’s success in the forex markets. While the majority of learning comes from live trading and experience, a trader should learn everything possible about the forex markets, including the geopolitical and economic factors that affect a trader’s preferred currencies. Homework is an ongoing effort as traders need to be prepared to adapt to changing market conditions, regulations and world events. All of us experience...
That’s one question which many would like to have answered. It is on everyone’s mind from the business community to the forex market. Previously the possibility of remaining in the customs union was a red line Prime Minister Theresa May and the pro-Brexit camp said they would not cross. Leaving the European Union was promoted as an act of freedom, and part of that freedom was to leave the EU customs union so that the UK can strike trade deals on their own which favor the British economy and not the German led EU. As Brexit is now less than 12...
When trying to distinguish the relationships between certain commodities and currencies around the world it helps to realize that situations can change and the relationships are fluid. However, there are some time-tested relationships that have been established over the years that may continue to hold true well into the 21st century. As commodities in the financial market have the same role as stock and currency, the ups and downs of commodity prices could significantly affect forex market. Some commodities, such as Crude Oil and Gold are well...
