Equity markets and the forex markets
FX and money markets ...
I think you are beginning to feel now is the importance of the profession and to the Forex market does not move randomly Yes, the changes in limiting the country's main engine and this requires you to some diligence, but make sure that the practice will have no difficulty in trading foreign currencies, and in this lesson we will look at commodity and financial markets to know What is the relationship between them and the Forex Market
The knowledge of some of the principles for capital markets is more important than ignorance because it benefits a dealer fundamental analysis in his analysis of currencies and can not do without them .. We provide you with information we Bbassat quick to discover the future trends of the currencies.
First ... Forex and Stocks
** On the contrary, low price of bonds give strong impetus to the high dollar that if the low price of bonds increases demand and thus increase demand for dollars to buy bonds.
Remember .. Global indicators of the market ..
1 - Most U.S. stock indexes: the Dow Jones industrial average Dow, and Nasdk NASDAQ, and an indication of the prestigious Standard & Poor's S & P 500 Artvallm meant the rise of the dollar.
2 - the most important indicators of England, Stock Exchange Index (CPI Afattsi FTSE 100) height meant the rise of cable
3 - the most important indicators of stock market of Japan (Nikkei Index Nikkei 225) height meant the rise of the yen
II ... Forex and oil
Oil is the lifeblood of the industrialized world for this is monitored and trading in the commodity called Balblak Gold Black Gold no Black Gold or Black Crack crack Balblak any part black.
The Organization of Petroleum Exporting Countries the Organization of Petroleum Exporting Countries
Membership of 11 States and the oil is sold Barrel and the more the oil price, the less the dollar.
This is the oil-producing countries, often accounting for 40% of world oil production
There are many countries that are producing black gold and store many of the large reserves of it in order to face days of high oil prices, including Canada, which often call them the West as the mafia black gold.
Canada is one of the largest oil producing country as well as they store a lot of it, followed by Saudi Arabia in second place, which is one of the largest exporters of oil, and we believe that the United States of America is the world's biggest consumer of oil, we believe that the U.S. economy, including the U.S. stock and the U.S. dollar affected by fluctuations in world oil prices.
Moment, a moment ..
Please remember that this is an important point ...
If oil prices rose
That was good for the Canadian dollar, and bad for the U.S. dollar
If oil prices decline
This was bad for the Canadian dollar, and good for the U.S. dollar
When it does take advantage of that?
Yes, we trade in the U.S. dollar / Canadian dollar against the USD / CAD control oil prices ..
Look at this chart ...
As seen in the planned movements of U.S. dollar / Canadian dollar versus the opposite each other.
For example, if the price of oil say the U.S. dollar and the price of the Canadian dollar and vice versa.
Please add this important tool to the toolbox when you analyze your trading dollar / Canadian and ...
This performance is more important for long-term strategy ...
Thirdly ... Forex and gold
Everyone loves gold .. So how do you not loving it!!
Gold is a metal and metal and shiny and made into jewelry.
In addition, gold is used in many areas Vistkhaddmh doctor and women as well as merchants.
In the world of finance and economy, look to gold as a protector of the country from the vagaries of inflation and is one of the most important goods that are traded.
So how do we link the Forex?
Excellent question .. And we answer to you, please look at this chart ..
Many traders believe that trading in the Australian dollar, such as trading in gold.
Because Australia is one of the world's largest gold producer and exports approximately 50% of it as a commodity in addition to precious metals.
This item is considered to be one of the most important accounts of the gross domestic product of Australia, so many traders watching the rise and fall of the item, they affect the Australian dollar.
Let's take a look at the chart compared to brushed gold.
This chart compares the month and the movement of gold and currency pair AUD / USD
We believe that the husband often with the direction of gold, but the one before the other ... !!
Red dots indicate places seem to change the direction of gold that gold is moving by the husband
The relationship between the task now.
Traders are trying to watch gold prices analytical experts to carry on the Australian dollar against the U.S. dollar.
For this we say to those who do not know how to analyze the pair in the currency market, you can trade it if you know determine the direction of gold in the stock market for the future.
Very Important Note: The gold and the Swiss franc safe haven for investors in the case of wars and political events and disasters. As was done in the Bretton Woods Agreement, which requires linking the exchange rate of the dollar with gold in order to ensure the stability of exchange rates of the most important currency of the world, despite the expiry of the agreement is still gold big role in front of the world's currencies, and enjoy the Swiss franc over the date an asset is safe because of strict confidentiality of the banking system, and neutrality politically from all States, and the independence of the central bank, and large reserves of gold
The New Zealand dollar and the report of the Office of commodities research guide CRB Index
New Zealand, like Australia, it is also a neighbor of the major exporters of goods ..
The New Zealand dollar label as currency traders (Kiwi Kiwi) because they are not linked to a commodity, but one linked to more than a commodity ..
Since January 1990 linked Kiwi by 73% according to the report of the Office of the guide CRB Index of commodities research standards of the world's largest commodity prices.
This scheme seems that the price of the New Zealand dollar / U.S. dollar moving in tandem according to the CRB over the past 25 years.
We find that the husband of the NZD / USD and are associated with the report of the CRB by 60%
We can say that the traders should look for similarities in the movements in the couple moved because of the dependency on New Zealand exports of goods.
Come see for example ..
The impact of economic news and reports on the U.S. dollar ...
April 2005, after the issuance of the positive and negative news on the currency pair sterling against the dollar .. Data were as follows,
Trade activity index cips of England in March came in 52.0 and the values after the previous review is from 51.8 to 51.6, and oil prices in New York has increased the price of oil up $ 2.40 on every barrel and reached the extent of $ 5.75 per barrel .. The number of new jobs (an indicator of non-farm payroll) for the month of March to the United States of America form a minimum of July last year .. For a sense of Michigan index, price index for March, which was issued at 92.6, while the expectation is 92.9
Very clear to all that all the indices of the United States has fallen ... And kept the index in the Dow Jones in New York Stock Exchange to 99.46 points, or down -0.95% and closed at 10404.30, as well as index Nasdaq's 14.42 points, ie -0.72% and stood at 1984.81, the Index S & P 500's 7.67 points, or -0.65 % and stood at 1172.92, and the profitability of bonds, the United States of America for 30 years formed the result fell 4.729 compared with the previous close to 0.037
In contrast, the London Stock Exchange, we find that the FTSE 100 index rose to +0.40% and stood at 4914.00
Here's a question to the experts of the economy!!
What should happen to the currency pair sterling against the U.S. dollar, when all of the above information will be announced in one day within a few hours specifically!
Answer .. Not falling, the dollar .. But the collapse of the dollar sharply.
Very good ... Excellent answer.
When the average rate of exchange in the U.S., 1.8583 to 1.8481, ie, more than 100 points on the negative conditions of the economy of the United States of America .. In stock Dow Jones Indexes New York Stock Exchange for points, or 49.36 (-0.48%), and it closed at 10140.12 Nasdk NASDAQ index rose 12.92 points, or for (0.66%) and remained at 1976.80 and the index of the S & P 500 fell 5.31 points, for any (-0.46%) and remained 1154.05 and profitability of bonds in the United States than 30 years was set up in any down 4.484 compared with the previous close to 0.047 and the University of Michigan index dropped it, and a pointer initial value of the sense of index Michigan in the United States in May, which, when 85.3 (although the expectation was 90.0 The previous toll - with 87.7), and export prices in the United States in April is +0.6% and the previous value of +0.7%
We just learned relationship between the foreign currency, oil, gold and the U.S. stock market and its relationship couples together.
There are a few things we wish to make you quickly.
Short-term movements of goods usually do not affect the currency item immediately.
And analysis of commodity currencies is best for the long-term trader, wholesale long-term investments.
Remember though that the currency-related goods, but exports are part of the economy, do not forget interest rates and political news ... Etc
Do not forget to see the relationship between the currency of the Canadian Petroleum
Do not forget to see the relationship between the Australian currency pair and gold
Do not forget to see the relationship between New Zealand and the report of the CRB commodity world