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


Foreign Exchange Market: How to Predict Price fxcm-markets.com/ Movements Introduction: The Foreign Exchange Market, Currency Market or.



International Finance: z crypto 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 the two main platforms for interbank Foreign Exchange Trading. 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. 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.

The Major Factors for Predicting Forex Market Moves: In order to profit from the exciting world of international trade you need a good grasp on the factors that influence a currency's price. When making our trades, we analyze five key factors. 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".

The discussion above shows that many factors can affect the forex market, such as 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. The survey found that the Australian dollar, which is a leading producer of precious metals such as gold and the Canadian dollar, which is a leading crude oil producer are the three top currencies with the strongest correlations to commodities. 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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