Best Minor Currency to Trade

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http://www.theforexnittygritty.com/forex/best-minor-currency-to-trade - Best Minor Currency to Trade - What is the best minor currency to trade? The economies of Brazil and Mexico, India and China,......

http://www.theforexnittygritty.com/forex/best-minor-currency-to-trade - Best Minor Currency to Trade - What is the best minor currency to trade? The economies of Brazil and Mexico, India and China, as well as Russia are growing. Increasing commerce will result in increasing currency exchange. Choosing the best minor currency to trade will depend upon a number of factors including potential profits, high volume markets, liquid markets, and evolving Forex market sentiment. In general, a prosperous economy will result in a more valuable currency. That having been said, nations such as China are accused of currency manipulation. To the extent that a nation manipulates its currency it might not be the best minor currency to trade. Such thoughts need to be part of how to develop a Forex trading system for minor currencies.
Mexico
The Mexican peso (MXN) is the 12th most traded in the world and the third most traded in the America’s after the US and Canadian dollars, both classified as major currencies. An exception for the Mexican Peso is that it can be traded against the New Zealand dollar as well, NZD MXN. Mexico had a growth rate of 3.8 percent in 2011. A strong advantage to picking the Mexican Peso as the best minor currency pair to trade is its relatively high trading volume, especially against the US dollar. Mexico’s proximity to the USA may also be helpful in looking at the fundamentals that drive Mexican currency exchange rates.
Brazil
Despite the strength the emerging Brazilian economy the real commonly trades only against the US Dollar, USD BRL. Brazil’s economy grew 2.7 percent in 2011. The long term direction for this currency will probably be up as Brazil emerges as the super power of Latin America. How fast the rise occurs will decide if this is the best minor currency to trade.
India
The Indian Rupee, INR, trades against all major currencies. The country had a 7.8 percent growth rate in 2011. The same argument used for Brazil works for India. The world’s largest democracy is growing rapidly which will likely drive the rupee upward as well. The openness of India’s society makes where to get important Forex news less of a problem than with countries such as Russia and China. The twin factors of transparency and growth may well make the Rupee the best minor currency pair to trade.
Russia
The Russian Ruble (RUB) trades against the US Dollar and the Euro, USDRUB and EURRUB. Russia’s economy grew by 4.3 percent in 2011. More effective development of its natural resources is Russia’s trump card and a vote for the Ruble as the best minor currency pair to trade.
China
China’s currency, the Yuan, does not float freely in an open market and the country is under repeated pressure from the European Union and the United States to let its currency rise to a market driven level. China’s economy grew by 9.2 percent in 2011.

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  • 1. Best Minor Currency to Trade www.TheForexNittyGritty.com
  • 2. To see a complete version of this presentation and to obtain our free EBook follow this link:http://portal.sliderocket.com/BLOUC/Best-Places- on-Earth-to-InvestRead the Forex Conspiracy Report for insights into trading foreign currencies. Get your copy athttp://portal.sliderocket.com/BLOUC/Best-Places- on-Earth-to-Invest www.TheForexNittyGritty.com
  • 3. What is the best minor currency to trade? www.TheForexNittyGritty.com
  • 4. The economies of Brazil and Mexico, India and China, as well as Russia are growing. www.TheForexNittyGritty.com
  • 5. Increasing commerce will result in increasing currency exchange.Choosing the best minor currency to trade will depend upon a number of factors including potential profits, high volume markets, liquidmarkets, and evolving Forex market sentiment. www.TheForexNittyGritty.com
  • 6. In general, a prosperous economy will result in a more valuable currency.That having been said, nations such as China are accused of currency manipulation. www.TheForexNittyGritty.com
  • 7. To the extent that a nation manipulates its currency it might not be the best minor currency to trade.Such thoughts need to be part of how to develop a Forex trading system for minor currencies. www.TheForexNittyGritty.com
  • 8. Mexico The Mexican peso (MXN) is the 12th most traded inthe world and the third most traded in the Americasafter the US and Canadian dollars, both classified as major currencies. www.TheForexNittyGritty.com
  • 9. Mexico had a growth rate of 3.8 percent in 2011. A strong advantage to picking the Mexican Peso asthe best minor currency pair to trade is its relativelyhigh trading volume, especially against the US dollar. www.TheForexNittyGritty.com
  • 10. Mexico’s proximity to the USA may also be helpful in looking at the fundamentals that drive Mexican currency exchange rates. www.TheForexNittyGritty.com
  • 11. Brazil Despite the strength the emerging Brazilianeconomy the real commonly trades only against the US Dollar, USD BRL. www.TheForexNittyGritty.com
  • 12. Brazil’s economy grew 2.7 percent in 2011. The long term direction for this currency will probably be up as Brazil emerges as the super power of Latin America.How fast the rise occurs will decide if this is the best minor currency to trade. www.TheForexNittyGritty.com
  • 13. India The Indian Rupee, INR, trades against all major currencies.The country had a 7.8 percent growth rate in 2011. www.TheForexNittyGritty.com
  • 14. The same argument used for Brazil works for India. The world’s largest democracy is growing rapidly which will likely drive the rupee upward as well. www.TheForexNittyGritty.com
  • 15. The openness of India’s society makes where to get important Forex news less of a problem than with countries such as Russia and China. The twin factors of transparency and growth maywell make the Rupee the best minor currency pair to trade. www.TheForexNittyGritty.com
  • 16. RussiaThe Russian Ruble (RUB) trades against the US Dollar and the Euro, USDRUB and EURRUB. www.TheForexNittyGritty.com
  • 17. Russia’s economy grew by 4.3 percent in 2011.More effective development of its natural resources is Russia’s trump card and a vote for the Ruble as the best minor currency pair to trade. www.TheForexNittyGritty.com
  • 18. ChinaChina’s currency, the Yuan, does not float freely inan open market and the country is under repeatedpressure from the European Union and the United States to let its currency rise to a market driven level. www.TheForexNittyGritty.com
  • 19. China’s economy grew by 9.2 percent in 2011. Although the China current account surplus isreduced such fundamentals may still have less to do with the value of the Yuan than decisions by the Chinese hierarchy. www.TheForexNittyGritty.com
  • 20. This may not be the best minor currency pair totrade unless you have a crystal ball that tells you what the Chinese hierarchy is about to do. As usual we offer this discussion in order to stimulate thought and not as explicit advice. www.TheForexNittyGritty.com
  • 21. Do your own fundamental and technical analysisand never trade when you do not understand what the markets are doing. www.TheForexNittyGritty.com
  • 22. For more insights and useful information regardingthe Forex markets and foreign currency trading, visit www.TheForexNittyGritty.com.