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International Finance: How to Predict the Potential Price Movements in the FOREX Market


Foreign Exchange Market: How to Predict Price more hints Movements Introduction: The Foreign Exchange Market, Currency Market or.



International Finance: .00000 cryptocurrency How can you predict price movements in the FOREX Market

Introduction:

The Foreign Exchange Market or Currency Market or FOREX Market is a form of exchange for the global decentralized trading of 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 determines the relative values of different currencies.

Currency conversion is one way the foreign exchange market helps international trade and investments. For example, it permits a business in the United states of America to import goods from the European Union member states especially Euro-zone members and pay Euros, even though its income is in US Dollars. The system also encourages direct speculating on currency values and carry trade, which is a form of speculation based upon the difference in interest rates 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. When making our trades, we analyze five key factors. They are listed in order of importance:

1. Interest Rates

(2) Economic Growth

(3) Geo-Politics

(4) Trade and capital Flows

(5) Change of Commodity Price Index

(6) Merger and Acquisition 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. In addition, traders need to be aware that the price of certain commodities like oil can have a significant impact on certain currency pairs.

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

The economic strength of a nation is directly related to the domestic industry as well as 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). The Swiss Fanc is a currency that also has a strong correlation with commodity prices, but it's a bit weaker than the New Zealand Dollar or the Japanese Yen. Knowing which currency is correlated to what commodity will help traders better understand the potential market movement of certain currency pairs.


Website: https://www.fxcm-markets.com/