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International Finance: How To Predict Potential Price Movements on the FOREX Market


Foreign Exchange Market: How to Predict Price forex broker with 0 minimum deposit Movements Introduction: The Foreign Exchange Market, Currency Market or.



International Finance: How to predict the potential price movement in the FOREX Market

Introduction:

The Foreign Exchange Market, Currency Market, or FOREX can you trade directly from tradingview Market refers to a global exchange that allows for decentralized trading in international currencies. The financial centers of the world are the anchors for trading among a variety of different buyers and sellers, Guest Posting except on weekends. EBS and Reuter's dealing 3000 are two main interbank Foreign Exchange trading platforms. The foreign exchange market is what determines the relative value of currencies.

The foreign exchange market assists international trade and investment by enabling Currency conversion. It allows, for example, a US-based business to pay Euros when importing goods from Eurozone countries, even though the income is in US dollars. It also supports direct speculation in the value of currencies, and the carry trade, speculation based on the interest rate differential between two currencies.

Major Factors to Predicting Forex Market Movements: To profit from the fascinating world of international trade, you must have a firm grip on the key factors that affect a currency's value. We analyze five factors when making our trades. In order of importance, they are:

1. Interest Rates

Economic Growth

(3) Geo-Politics

(4) Trade and capital Flows

(5) Change of Commodity Price Index

Mergers and Acquisitions Activity

Here I discuss about the change in Commodity Price Index, or "How to use commodity prices to predict potential price movements in the FOREX Market".

From the above discussion it is clear that the forex market can be moved by many factors such as the supply and demand, interest rates, economic growth and so on. Besides this, traders should also know that certain currency pairs can be greatly influenced by the price of some commodities such as oil.

Which currencies are closely related with the price of commodities on the FOREX Market?

It is know that the economic strength of a country is directly related to its domestic industry and its international trades. Thus, the price of important commodities produced in a country can greatly influence the value of the underlying currency in the FOREX Market. According to survey, the top three currencies that have the tightest correlations with commodities are the Australian dollar (Australia is a major producers of precious metal such as gold), the Canadian dollar (Canada is a major producer to crude oil). Other currencies that are also impacted by commodity prices but have a weaker correlation are the Swiss Fanc, New Zealand Dollar and the Japanese Yen. Knowing which currency is correlated to what commodity will help traders better understand the potential market movement of certain currency pairs.


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