Symbol

Social Trading

             
It's the easiest way to make money ...


Daily Newsletter Top Stories Calculators Video Top News Video Personal Finance Video Shopping & Commerce Greece News Testimonials
            Bookmark and Share
Dimitri  Kanellopoulos
I'd like to welcome
you to
BuyActive.com


Top  Three  Picks !!!
BAC-Bank of America
GE-- General   Electric
JNJ-Johnson&Johnson

[Most Recent USD from www.kitco.com]
FORUM
Login  |  Register
Today's Market Overview
Today's Most Active - US
New York      London      Tokyo




ADVERTISE HERE

Forex Bundles
https://suretrader.com
ADVERTISE HERE
180x180 Banner
on all the pages only
$99.00 a month

 
ADVERTISE HERE
Your link on all pages
only $9.00 a month

Web Hosting For $1.00
Website from $29.95!
Hair care products
Velo Bravo
Costa Kanellos Photography
Discuss A Deal
Top Stories


Understanding Currency Trends: How the major trends are created

Online forex is the realm of speculators. Every trader has his ideas on what distinguishes today’s trading from yesterday, and any commentator will have his opinion on what causes this or that movement on a typical day of trading. Shall we, then, reach the conclusion that forex analysis is the field of fantasy and theorizing where even the most basic facts require an extraordinary degree of convincing before they are agreed to by everyone? Not necessarily, because money supply, of all, things, is uniquely determined by the governments, and it is possible to build credible and solid theories on this basis alone, even if they will not be sufficient for our day-to-day experience. In this article we take a look at the powerful role of intergovernmental agreements in determining forex trends.

Through interest rates, governments control the underlying trends in the currency markets. That is a well-understood fact. Nobody will lend at a cheaper rate than the government on a sustained basis, and as such, the central banks have the power to refresh or choke an economy at will, at least on a longer term basis. Yet interest rates change all the time, and they rarely create the kind of long term patterns that explain how some trends can last for years, if not for decades in some cases. Although such trends can have a multitude of causes, we often discover major international agreements, and commitment of governments to each other lying behind such long-term price dynamics.

During the Cold War era, for example, there existed a complex set of international agreements aimed at bailing out the American economy at all costs, especially in case that the dollar lost too much of its value at a too-quick pace. This ensured that, even in cases where the fundamentals of the U.S. economy were weakening, the currency could manage to appreciate, ensuring the resilience of the U.S. system as the bulwark of the Western World against the perceived communist threat.

The agreement between the Danish central bank, and the ECB is another good example of how an utterly credible peg can be established when the central banks on both sides of the agreement decide to throw their full backing behind it. We also witness major trend changes in almost all currencies at precisely the points where the central banks in question make an explicit and public comment to back this or that policy on a mutual assistance basis. The coordinated interventions of the ECB and FED, for example, to sustain the Euro against the possibility of further losses signaled the beginning of a decade long appreciation for the European currency. Similarly, several international conferences about the value of the dollar in the 80s determined the beginning and end of some multi-year trends in the global markets.

Thus, any analysis of trends in the global market must begin with the political will that stands behind the scenes and its toleration of emerging patterns in the freedom of trading. To this purpose, you need the aid of some fundamental news provider, and the best forex broker in the world will provide you with multiple streams of data from the major news providers of the world. It may tiresome to seek that broker, but once you find it, the benefits will surely justify the efforts made.












[ Home | Markets/Movers | News Headlines | World Stock Exchanges | Links | Terms
| Economic Calendar | Stock Trading | Forex Trading | Holiday Calendar | Video | Disclaimer
| About Us | Politics | Top Ten Picks | Portfolios | Privacy Policy | Advertise | Site Map | Contact ]


BuyActive.com
E-Mail :admin@buyactive.com
Copyright © 2011 BuyActive.com. All rights reserved. Please read our Terms of Use and  Privacy Policy
Use of this website and information available therein is subject to the Legal Notice and Disclaimer
Data & information provided is for informational purposes only, and is not intended for trading purposes.
Powered by HostKan.com
RECOMMENDED
STOCKS
Dimitri Kanellopoulos
You need to have a portfolio of solid stocks. Believe me, you will not want to miss these profit-making opportunities. Check out my top three picks and start making money from these winners.
Top Three Picks !!!
BAC--Bank of America
GE--General Electric
JNJ-Johnson&Johnson
BuyActive.com

NEWS PROVIDERS
Bloomberg.com
TheStreet.com
Reuters.com
CNBC.com
Yahoo Finance
MarketWatch
The Wall Street Jurnal
Financial Times
BusinessWeek
Associated Press.
Barron's
Forbes .com
The Motley Fool
CNN Money.com
TradingMarkets.com
Morningstar.com
Investors.com
CENTRAL BANKS
Federal Reserve
European Central
Bank of Japan
Bank of Canada
Bank of England
Bank of Australia
Yahoo Stores - Button 120x60
Daily Trade Plan with Chris Mathis
INVESTOR EDUCATION
Trading Academy
Investools
Individual Investor
Investor Education
Yet another stockbroker
FORUMS
Online Traders
AI-Stockmarket
Superiorinvestor
Moneytalk Forum
Ezboard Forum