Foreign exchange investment basics

forexbrokerrebateprogram 2023/2/24 22:22:47 4Views

foreign forexbrokerrebateprogram autorebateforexvestment basics affect the exchange cashback forex trend, very complex, even Warren Buffett, the god of stocks in the last year to see the wrong dollar trend in order to grasp the medium forex broker rebate program long-term trends, some of the most driving force of the fundamental elements, we must first understand: 1. The impact of interest rate spreads Th forexrebatebest is the theme of the foreign exchange market in 2005 If a countrys interest rate level is relatively higher than other countries, it will stimulate the inflow of foreign funds. This will improve the capital account and raise the exchange rate of the countrys currency Europe, Japan and other economies are not as strong as the U.S. economic development, global funds are flocking to the U.S. medium- and long-term Treasury bonds, the result of foreign capital to the U.S. dollar a steady stream of buying, continued to support the dollar exchange rate 2. inflation rate and trade balance original theory that the difference between domestic and foreign inflation, is the dominant factor in determining the long-term trend of the exchange rate, the basis for judgment Called purchasing power parity but in fact, historical data show that the exchange rates of the two countries and their inflation rates do not have a direct negative correlation, but rather the central bank determinants are stronger current U.S. inflation rate of 3.8%, higher than the EUs 2.3% and Japans 0.5%, but the Federal Reserve is concerned about the adverse effects of inflation and continued to raise interest rates, resulting in the dollar carry advantage continues to emerge, also shows that interest rates are currently the most powerful foreign exchange market The balance of payments, the trade deficit in the previous year has become a nightmare for the dollar market is generally believed that the U.S. current account deficit is difficult to make up, it is necessary to devalue the dollar to ease, so there was a huge dollar sell-off but now the U.S. capital inflow data can offset the trade account deficit, the influence of the U.S. balance of payments issues thus weakened 3. economic data and central bank action these two factors dominate the short-term market Behavioral economic data is very complex and can influence the market in the short term, while central bank intervention is mainly due to the impact of central banks as a powerful financial force that can buy or sell a large amount of a currency in the short term on the market
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