The key to making money in the Forex is understanding what makes currency pairs move. Ultimately, it is investors who make currency pairs move as they buy and sell different currencies, but these investors buy and sell for a reason. Either they see something happening fundamentally in the global economy that makes them believe a currency is going to get stronger or they see something happening fundamentally that makes them believe a currency is going to get weaker. In other words, they watch the fundamentals and make their decisions according to what they see
Everything is relative in the forex market. The euro, by itself, is neither strong nor weak. The same holds true for the U.S. dollar. By itself, it is neither strong nor weak. Only when you compare two currencies together can you determine how strong or weak each currency is in relation to the other currency.
Do you think the weakening japanese yen is helping the japanese economy to re...asefa asdfawf
The document discusses the weakening Japanese yen and its impact on the Japanese economy. A weak yen helps Japanese exports become more competitive but raises costs for fuel and raw material imports. It could also discourage domestic consumption by making imports more expensive. While a weak yen benefits export companies, excessive weakening could cause problems if it is not corrected by foreign exchange intervention. The document considers different views on how the Japanese economy can recover from deflation, including the need for continued monetary easing to boost inflation.
http://www.netpicks.com/tjgiveaway1 - YOUR FREE TRADING SYSTEM
I am very interested in anything related to the CAD or the Canadian dollar since I live in Canada. Not only do I hold a USD bank account but also hold a long position(s) in the USDCAD Forex pair buying on certain types of dips.
We’ve had a contraction in our economy since oil prices have tanked and Ontario, once a manufacturing powerhouse, has become the province of debt and increasing hydro rates.
When there is a contraction in the economy, the Fed Banks look to interest rates thinking that will spur the economy. Today, we had a BOC rate announcement and as many of us expected, the rate was cut for the second time in 2015. Cutting rates may have the effect the central bank thinks it will but there are also two cautions as well.
http://www.netpicks.com/story-of-the-usdcad-forex-chart/ - READ MORE
The Japanese yen has strengthened over the past 20 years due to it being a currency with net inflows. More yen are bought than sold, leading to increased demand. This strengthening tendency is reinforced further by low returns on investments in other countries' foreign reserves, Japan's trade surplus, and monetary policies in the US and Europe. Historically, the yen has fluctuated but the overall pattern has been for it to grow stronger against the dollar. The strength of a currency is driven by balances of supply and demand - when demand exceeds supply, as it does currently for the yen, the currency strengthens in value.
The Japanese yen has been unusually strong compared to the US dollar. This is partly due to demand for Japanese assets from foreign investors diversifying their reserves. The yen is seen as a stable currency during global economic crises, though a too-strong yen hurts Japanese companies' ability to export. Contributing factors include Japan's aging population slowing growth and investors pulling money out of other countries into Japan after its 2011 earthquake and tsunami.
The Japanese yen has strengthened against the US dollar over the past 20 years. This is due to net capital inflows into Japan from its trade surplus, low returns on investments elsewhere, expectations of US monetary policy, and diversification away from the dollar and euro. While a stronger currency hurts exports, Japan's trade surplus currently reinforces yen strength. In the long run, a stronger yen could lower both exports and imports.
The Japanese Yen has strengthened against the US dollar due to net capital inflows into Japan. This is driven by Japan's large trade surplus, low returns on investments elsewhere, expectations of low US interest rates, and diversification away from the dollar and euro. Historically, fluctuations in the Yen are normal and the long-term trend has been strengthening against the dollar. The strong Yen poses challenges for Japan's export-driven economy.
The Japanese yen has strengthened against the US dollar over the past 20 years. The yen grows stronger when demand for yens is high, such as when exports from Japan create demand for yen to purchase Japanese goods, or when foreign investment in Japanese assets increases demand. Conversely, the yen weakens when supply of yens is high, such as when imports to Japan increase the supply of yen. The yen's strengthening reflects net currency inflows into Japan through trade and investment.
Everything is relative in the forex market. The euro, by itself, is neither strong nor weak. The same holds true for the U.S. dollar. By itself, it is neither strong nor weak. Only when you compare two currencies together can you determine how strong or weak each currency is in relation to the other currency.
Do you think the weakening japanese yen is helping the japanese economy to re...asefa asdfawf
The document discusses the weakening Japanese yen and its impact on the Japanese economy. A weak yen helps Japanese exports become more competitive but raises costs for fuel and raw material imports. It could also discourage domestic consumption by making imports more expensive. While a weak yen benefits export companies, excessive weakening could cause problems if it is not corrected by foreign exchange intervention. The document considers different views on how the Japanese economy can recover from deflation, including the need for continued monetary easing to boost inflation.
http://www.netpicks.com/tjgiveaway1 - YOUR FREE TRADING SYSTEM
I am very interested in anything related to the CAD or the Canadian dollar since I live in Canada. Not only do I hold a USD bank account but also hold a long position(s) in the USDCAD Forex pair buying on certain types of dips.
We’ve had a contraction in our economy since oil prices have tanked and Ontario, once a manufacturing powerhouse, has become the province of debt and increasing hydro rates.
When there is a contraction in the economy, the Fed Banks look to interest rates thinking that will spur the economy. Today, we had a BOC rate announcement and as many of us expected, the rate was cut for the second time in 2015. Cutting rates may have the effect the central bank thinks it will but there are also two cautions as well.
http://www.netpicks.com/story-of-the-usdcad-forex-chart/ - READ MORE
The Japanese yen has strengthened over the past 20 years due to it being a currency with net inflows. More yen are bought than sold, leading to increased demand. This strengthening tendency is reinforced further by low returns on investments in other countries' foreign reserves, Japan's trade surplus, and monetary policies in the US and Europe. Historically, the yen has fluctuated but the overall pattern has been for it to grow stronger against the dollar. The strength of a currency is driven by balances of supply and demand - when demand exceeds supply, as it does currently for the yen, the currency strengthens in value.
The Japanese yen has been unusually strong compared to the US dollar. This is partly due to demand for Japanese assets from foreign investors diversifying their reserves. The yen is seen as a stable currency during global economic crises, though a too-strong yen hurts Japanese companies' ability to export. Contributing factors include Japan's aging population slowing growth and investors pulling money out of other countries into Japan after its 2011 earthquake and tsunami.
The Japanese yen has strengthened against the US dollar over the past 20 years. This is due to net capital inflows into Japan from its trade surplus, low returns on investments elsewhere, expectations of US monetary policy, and diversification away from the dollar and euro. While a stronger currency hurts exports, Japan's trade surplus currently reinforces yen strength. In the long run, a stronger yen could lower both exports and imports.
The Japanese Yen has strengthened against the US dollar due to net capital inflows into Japan. This is driven by Japan's large trade surplus, low returns on investments elsewhere, expectations of low US interest rates, and diversification away from the dollar and euro. Historically, fluctuations in the Yen are normal and the long-term trend has been strengthening against the dollar. The strong Yen poses challenges for Japan's export-driven economy.
The Japanese yen has strengthened against the US dollar over the past 20 years. The yen grows stronger when demand for yens is high, such as when exports from Japan create demand for yen to purchase Japanese goods, or when foreign investment in Japanese assets increases demand. Conversely, the yen weakens when supply of yens is high, such as when imports to Japan increase the supply of yen. The yen's strengthening reflects net currency inflows into Japan through trade and investment.
The document discusses inflation trends and indicators, the automotive sector, and recent economic vital signs. It notes that while inflation has been low recently, most experts expect it to rise above 2% in the coming years. It also outlines factors that can lead to higher inflation like increasing oil, metal, and food prices. The automotive sector is facing declines in sales and jobs due to bankruptcies and consolidations among major manufacturers. Finally, the document provides an overview of recent economic indicators in the US related to housing, spending, and unemployment.
Daily i-forex-report-1 by epic research 31 may 2013Epic Daily Report
The document provides a daily forex report and analysis from Epic Research dated May 31st, 2013. It discusses recent movements in the USD/JPY and EUR/USD currency pairs. It notes that the USD strengthened against the JPY and euro on news that Japan's public pension fund may alter its investment strategy in response to volatility in bond markets. Charts and analysis are provided for the EUR/USD, USD/JPY, GBP/USD, and USD Index with signals and trading tips. The document also includes a economic calendar of upcoming data releases.
The document provides a daily forex report with the following key points:
- The US dollar is threatening to collapse despite the Dow Jones Industrial Average marking a technical breakdown, as FX traders are confused by the relationship.
- The euro has failed to gain despite improved eurozone GDP data, concerning some that the lack of a bullish response is a red flag.
- The yen slipped on concerns over Japanese growth and debt levels surpassing 1 quadrillion yen.
- Technical analyses are provided for EURUSD, USDJPY, GBPUSD, EURGBP and the USD index, with trading tips and signals.
The document discusses various aspects of foreign exchange rates including:
1. Exchange rates are the ratio between two currencies and are quoted regularly in publications. Major world currencies include the USD, Euro, Yen, GBP, etc.
2. Exchange rates can be quoted directly or indirectly. Direct quotes place the domestic currency first while indirect quotes place it second.
3. Spot exchange rates are determined by the interplay of demand and supply forces in the foreign exchange market. Factors like the balance of payments, inflation, interest rates, and others influence spot rates.
The document discusses reasons for the recent strengthening of the Japanese yen. It notes that over the past 20 years, the yen has generally strengthened against the dollar. The yen is strengthening due to Japan's trade surplus, low domestic interest rates, and status as a safe haven currency. This is driving demand for yen from foreign investors seeking Japanese assets. However, a strong yen also creates problems for Japan's export-driven economy by making its products less competitive overseas.
The document discusses how exchange rates between currencies are determined by the forces of supply and demand in foreign exchange markets. There are two main reasons for exchanging currencies: to purchase goods/services from another country or relative changes in interest rates between countries. If demand for a currency increases due to a change in tastes, interest rates, or other economic factors, its value will appreciate as its price in the foreign exchange market rises. An appreciating currency makes imports less expensive and exports more expensive, decreasing exports and increasing imports.
This document provides an overview of key concepts related to foreign exchange rates:
1) It defines foreign exchange rates as the price of one currency expressed in terms of another currency. Rates can be quoted in two ways depending on which country is designated the home country.
2) An appreciation occurs when a currency can buy more of another currency, while a depreciation happens when it can buy less. Changes in bilateral rates are used to calculate changes in effective exchange rates.
3) Exchange rate regimes can be fixed, where a country pegs its currency to another, or floating, where currencies fluctuate freely. Developed countries typically have floating regimes while developing countries have more volatility and sometimes currency crises.
The document discusses why the Japanese yen has become so strong compared to the US dollar. It was expected that the yen would weaken due to Japan's low interest rates, aging population, and high public debt. However, the yen has strengthened due to demand for Japanese assets from foreign reserves diversification and expectations that returns outside Japan will be lower and riskier. The yen was also boosted initially after the 2011 earthquake in Japan as Japanese investors pulled money from overseas and back into Japan.
The strong Japanese yen against the US dollar is currently benefiting Japan's export-driven economy. While some attribute the yen's strength to Abenomics, the document argues it is primarily due to the economic recovery in the US making the dollar less expensive. For Japanese export companies, a stronger yen enhances their international competitiveness. However, it also makes travel to Japan more expensive for foreigners and can raise domestic prices. Overall, the yen is expected to remain strong around 105-110 yen to the dollar due to continued US economic growth and monetary easing by the Federal Reserve.
This document provides an overview of exchange rates and foreign exchange markets. It discusses key terms like spot rates, forward rates, and cross rates. It also summarizes several theories of exchange rate determination such as purchasing power parity, monetary approach, and asset approach. Finally, it outlines the evolution of international monetary systems from bimetallism to the classical gold standard to the modern floating rate system.
The document discusses the history and evolution of international monetary systems from bimetallism to the present day. It covers major historical systems like the gold standard and Bretton Woods system. It also explains key concepts in international finance like exchange rate theories, foreign exchange markets, and currency quotations. Major developments covered include the establishment of the Euro and current mixed exchange rate arrangements used globally.
do you want to present a beautiful presentation about the parts of the newspaper?? I GOT YOU use this presentation for you to present the parts of it....
Japan devalued the yen to boost exports and employment by making Japanese goods cheaper overseas. A weaker yen benefits Japan's export-reliant economy but places pressure on other countries by making their goods more expensive internationally. While helping Japanese businesses, devaluing the yen also risks higher inflation worldwide and flight of bond investors concerned about Japan's large debt levels. China warned that currency devaluation could hurt global growth.
Another presentation from International Business. Robert Braden, Brian Deeb and I tackled the topic of exchange rates utilizing Sony as a tool. There is plenty of information included especially how the rise in the Japanese Yen affected Sony's financial outlook.
The Japanese yen is strong against the U.S. dollar due to net currency inflows into Japan from its trade surplus and high demand for Japanese assets from foreign investors. Japan exports more than it imports, increasing demand for the yen, while low returns elsewhere and diversification away from the dollar drive investment into Japanese money markets. Historically the yen has strengthened against the dollar over the past 20 years and recent gains are consistent with this long-term trend.
The Indian rupee depreciated against the US dollar due to dollar demand from importers and banks, while weak domestic market sentiments also put pressure on the currency. The US ISM Non-Manufacturing PMI surged in February and German retail sales plunged in January, affecting movements in the dollar, euro, and other currencies. Technical analyses are provided for various currency pairs like USDINR, EURINR, and GBPINR along with economic indicators to watch that could impact the currencies.
Carry trade involves borrowing money in a market with low interest rates and investing in a market with high interest rates to profit from the interest rate differential. However, it also carries currency risk as it involves two different currencies. For carry trade to be profitable, the exchange rate between the two currencies must remain stable. If the currency of investment weakens against the currency of borrowing, the investor can face losses instead of gains.
The Japanese yen has strengthened against the US dollar over the last 20 years due to net capital inflows into Japan. The yen is seen as a safe haven currency, and Japanese interest rates are among the lowest in the world, making Japan an attractive place to park money. However, a strong yen hurts Japan's export-driven economy. The document analyzes reasons for the yen's strength and its implications.
O
Where S = Savings, T = Taxes, I = Investment, G = Government spending, X = Exports,
M = Imports. According to this approach, the balance of payments equilibrium requires that
the excess of domestic savings over domestic investment plus the excess of taxes over
government spending plus the excess of imports over exports should be equal to zero.
C
The document summarizes the key concepts of foreign exchange management including:
ZA
D
1) The sources of demand and supply of foreign exchange including import/export companies,
foreign investors, and speculators. There is an inverse relationship between exchange rates
and demand and a positive relationship between exchange rates and
The 10 Most Important Fundamental Indicators jamesyx
Fundamental indicators make it easier to predict whether a currency is about to increase or decrease in relative value. As opposed to technical indicators, which indiscriminately focus on the numbers, fundamental indicators account for material developments in the real world.
Monetary policy involves controlling the supply of money in an economy to achieve goals like price stability and economic growth. The central bank implements monetary policy using tools like open market operations, adjusting reserve ratios, and setting interest rates. These tools work through channels like interest rates and credit to influence money supply, inflation, and other macroeconomic variables. Effective monetary policy requires coordination between fiscal and monetary authorities to avoid conflicting policies. The Bangladesh Bank follows an inflation targeting framework and uses reserve money and broad money as targets to achieve its goals of stable prices, growth, and balance of payments.
The document discusses inflation trends and indicators, the automotive sector, and recent economic vital signs. It notes that while inflation has been low recently, most experts expect it to rise above 2% in the coming years. It also outlines factors that can lead to higher inflation like increasing oil, metal, and food prices. The automotive sector is facing declines in sales and jobs due to bankruptcies and consolidations among major manufacturers. Finally, the document provides an overview of recent economic indicators in the US related to housing, spending, and unemployment.
Daily i-forex-report-1 by epic research 31 may 2013Epic Daily Report
The document provides a daily forex report and analysis from Epic Research dated May 31st, 2013. It discusses recent movements in the USD/JPY and EUR/USD currency pairs. It notes that the USD strengthened against the JPY and euro on news that Japan's public pension fund may alter its investment strategy in response to volatility in bond markets. Charts and analysis are provided for the EUR/USD, USD/JPY, GBP/USD, and USD Index with signals and trading tips. The document also includes a economic calendar of upcoming data releases.
The document provides a daily forex report with the following key points:
- The US dollar is threatening to collapse despite the Dow Jones Industrial Average marking a technical breakdown, as FX traders are confused by the relationship.
- The euro has failed to gain despite improved eurozone GDP data, concerning some that the lack of a bullish response is a red flag.
- The yen slipped on concerns over Japanese growth and debt levels surpassing 1 quadrillion yen.
- Technical analyses are provided for EURUSD, USDJPY, GBPUSD, EURGBP and the USD index, with trading tips and signals.
The document discusses various aspects of foreign exchange rates including:
1. Exchange rates are the ratio between two currencies and are quoted regularly in publications. Major world currencies include the USD, Euro, Yen, GBP, etc.
2. Exchange rates can be quoted directly or indirectly. Direct quotes place the domestic currency first while indirect quotes place it second.
3. Spot exchange rates are determined by the interplay of demand and supply forces in the foreign exchange market. Factors like the balance of payments, inflation, interest rates, and others influence spot rates.
The document discusses reasons for the recent strengthening of the Japanese yen. It notes that over the past 20 years, the yen has generally strengthened against the dollar. The yen is strengthening due to Japan's trade surplus, low domestic interest rates, and status as a safe haven currency. This is driving demand for yen from foreign investors seeking Japanese assets. However, a strong yen also creates problems for Japan's export-driven economy by making its products less competitive overseas.
The document discusses how exchange rates between currencies are determined by the forces of supply and demand in foreign exchange markets. There are two main reasons for exchanging currencies: to purchase goods/services from another country or relative changes in interest rates between countries. If demand for a currency increases due to a change in tastes, interest rates, or other economic factors, its value will appreciate as its price in the foreign exchange market rises. An appreciating currency makes imports less expensive and exports more expensive, decreasing exports and increasing imports.
This document provides an overview of key concepts related to foreign exchange rates:
1) It defines foreign exchange rates as the price of one currency expressed in terms of another currency. Rates can be quoted in two ways depending on which country is designated the home country.
2) An appreciation occurs when a currency can buy more of another currency, while a depreciation happens when it can buy less. Changes in bilateral rates are used to calculate changes in effective exchange rates.
3) Exchange rate regimes can be fixed, where a country pegs its currency to another, or floating, where currencies fluctuate freely. Developed countries typically have floating regimes while developing countries have more volatility and sometimes currency crises.
The document discusses why the Japanese yen has become so strong compared to the US dollar. It was expected that the yen would weaken due to Japan's low interest rates, aging population, and high public debt. However, the yen has strengthened due to demand for Japanese assets from foreign reserves diversification and expectations that returns outside Japan will be lower and riskier. The yen was also boosted initially after the 2011 earthquake in Japan as Japanese investors pulled money from overseas and back into Japan.
The strong Japanese yen against the US dollar is currently benefiting Japan's export-driven economy. While some attribute the yen's strength to Abenomics, the document argues it is primarily due to the economic recovery in the US making the dollar less expensive. For Japanese export companies, a stronger yen enhances their international competitiveness. However, it also makes travel to Japan more expensive for foreigners and can raise domestic prices. Overall, the yen is expected to remain strong around 105-110 yen to the dollar due to continued US economic growth and monetary easing by the Federal Reserve.
This document provides an overview of exchange rates and foreign exchange markets. It discusses key terms like spot rates, forward rates, and cross rates. It also summarizes several theories of exchange rate determination such as purchasing power parity, monetary approach, and asset approach. Finally, it outlines the evolution of international monetary systems from bimetallism to the classical gold standard to the modern floating rate system.
The document discusses the history and evolution of international monetary systems from bimetallism to the present day. It covers major historical systems like the gold standard and Bretton Woods system. It also explains key concepts in international finance like exchange rate theories, foreign exchange markets, and currency quotations. Major developments covered include the establishment of the Euro and current mixed exchange rate arrangements used globally.
do you want to present a beautiful presentation about the parts of the newspaper?? I GOT YOU use this presentation for you to present the parts of it....
Japan devalued the yen to boost exports and employment by making Japanese goods cheaper overseas. A weaker yen benefits Japan's export-reliant economy but places pressure on other countries by making their goods more expensive internationally. While helping Japanese businesses, devaluing the yen also risks higher inflation worldwide and flight of bond investors concerned about Japan's large debt levels. China warned that currency devaluation could hurt global growth.
Another presentation from International Business. Robert Braden, Brian Deeb and I tackled the topic of exchange rates utilizing Sony as a tool. There is plenty of information included especially how the rise in the Japanese Yen affected Sony's financial outlook.
The Japanese yen is strong against the U.S. dollar due to net currency inflows into Japan from its trade surplus and high demand for Japanese assets from foreign investors. Japan exports more than it imports, increasing demand for the yen, while low returns elsewhere and diversification away from the dollar drive investment into Japanese money markets. Historically the yen has strengthened against the dollar over the past 20 years and recent gains are consistent with this long-term trend.
The Indian rupee depreciated against the US dollar due to dollar demand from importers and banks, while weak domestic market sentiments also put pressure on the currency. The US ISM Non-Manufacturing PMI surged in February and German retail sales plunged in January, affecting movements in the dollar, euro, and other currencies. Technical analyses are provided for various currency pairs like USDINR, EURINR, and GBPINR along with economic indicators to watch that could impact the currencies.
Carry trade involves borrowing money in a market with low interest rates and investing in a market with high interest rates to profit from the interest rate differential. However, it also carries currency risk as it involves two different currencies. For carry trade to be profitable, the exchange rate between the two currencies must remain stable. If the currency of investment weakens against the currency of borrowing, the investor can face losses instead of gains.
The Japanese yen has strengthened against the US dollar over the last 20 years due to net capital inflows into Japan. The yen is seen as a safe haven currency, and Japanese interest rates are among the lowest in the world, making Japan an attractive place to park money. However, a strong yen hurts Japan's export-driven economy. The document analyzes reasons for the yen's strength and its implications.
O
Where S = Savings, T = Taxes, I = Investment, G = Government spending, X = Exports,
M = Imports. According to this approach, the balance of payments equilibrium requires that
the excess of domestic savings over domestic investment plus the excess of taxes over
government spending plus the excess of imports over exports should be equal to zero.
C
The document summarizes the key concepts of foreign exchange management including:
ZA
D
1) The sources of demand and supply of foreign exchange including import/export companies,
foreign investors, and speculators. There is an inverse relationship between exchange rates
and demand and a positive relationship between exchange rates and
The 10 Most Important Fundamental Indicators jamesyx
Fundamental indicators make it easier to predict whether a currency is about to increase or decrease in relative value. As opposed to technical indicators, which indiscriminately focus on the numbers, fundamental indicators account for material developments in the real world.
Monetary policy involves controlling the supply of money in an economy to achieve goals like price stability and economic growth. The central bank implements monetary policy using tools like open market operations, adjusting reserve ratios, and setting interest rates. These tools work through channels like interest rates and credit to influence money supply, inflation, and other macroeconomic variables. Effective monetary policy requires coordination between fiscal and monetary authorities to avoid conflicting policies. The Bangladesh Bank follows an inflation targeting framework and uses reserve money and broad money as targets to achieve its goals of stable prices, growth, and balance of payments.
The document provides an economic outlook report for September 2010 by Mike Lathigee, Chairman and CEO of Alliance Investment Solutions. The summary is:
1) The economy is experiencing extreme uncertainty and it is difficult to determine if it is improving or declining. Cash flow from conservative, low-risk investments is the focus.
2) Real estate appreciation is not expected in the near future. Cash flow from real estate is recommended over appreciation-based investments.
3) The stock market uncertainty is due to mixed economic indicators like high unemployment and weak corporate earnings. Government bonds have increased in demand despite low returns.
4) Emerging markets are seeing strong growth while most developed economies are growing slower than the US
This document discusses several topics related to money, inflation, and interest rates. It defines money as including notes, coins, bank deposits, and credit. It explains that inflation is a persistent rise in general price levels and discusses how Australia's inflation rate compares to other OECD countries. Interest rates are defined as the annual return on securities and payments for the use of funds. The document also outlines factors that influence money supply, inflation, and interest rates, such as government transactions, credit creation, and central bank actions.
The document discusses the Federal Open Market Committee (FOMC) meeting minutes being released this week, which caused stock markets to surge. The minutes pointed to the likelihood of interest rates being kept low for longer than expected. The investment committee has been critical of the Fed's decision to keep rates artificially low for years, as it forces seniors and savers into riskier assets. A Deutsche Bank analysis found a strong correlation between the increasing size of the Fed's balance sheet from bond purchases and the increasing length of FOMC statements, suggesting the Fed feels a need to further explain their actions. The implications are that investors will continue facing challenges finding attractive income investments for the next few years.
This document discusses volatility and provides strategies for managing risk. It begins by stating that moderate volatility is healthy for financial markets as it separates strong from weak investments. The document then discusses three components needed for a well-functioning financial system: cognitive diversity among investors, full disclosure of information, and rewards/penalties for correct/incorrect views. It suggests investors should focus on owning businesses rather than reacting to market fluctuations, and construct diversified portfolios that are not overly correlated with any single index. Strategies discussed for managing risk include owning a variety of assets, investing globally for currency exposure benefits, and focusing on long-term goals rather than short-term volatility.
The document provides an overview of several topics in economics and finance through a series of lecture summaries:
1. It discusses business cycles, markets, financial institutions, and the various types of markets.
2. It then covers the flow of funds between different entities, the role of financial intermediaries, and foreign markets.
3. Several lectures focus on interest rates, present value calculations, determinants of interest rate levels, and the bond market.
4. Additional topics include monetary policy, money markets, mortgages, stock markets, foreign exchange, and derivatives.
The document provides an overview of monetary policy in the United States. It discusses the goals and tools of the Federal Reserve, including open market operations, targeted interest rates, and reserve ratios. It also explains how the banking system creates money through the process of lending deposits. The document outlines models of how monetary policy impacts aggregate demand and the economy through changes in interest rates and the money supply.
- The document discusses the minutes from the recent Fed meeting which revealed divisions among members on the outlook for inflation. This caused increased division among investors as stocks and bonds both rose, seen as a contradiction.
- It suggests the Fed is actually more worried about inflation than they state publicly. Their divisions may be an attempt to cover up these underlying concerns.
- Looking ahead, it says the upcoming ECB minutes could confirm the euro's downtrend or spark a breakout to the upside, completing a triple bottom pattern. It argues Draghi may have misled euro investors about the ECB's intentions.
Signs of an impending stock market crashSwapnilRege2
Stock Markets Greed Fear market Pyschology Sotck market Fluctuations Signs of Stock market reaching the top Initial signs of bear market beginning Market fluctuations
1. The portfolio manager discusses the market performance in Q2 2014, with the Canadian equity markets outperforming other global regions.
2. He explains that central bank monetary policies, particularly from the US Federal Reserve and European Central Bank, have been a key driver for the stock market rally over the past few years by keeping interest rates low.
3. The portfolio manager reiterates his advice to investors to stick to their customized plans and not be deterred by short-term market fluctuations, as the plans are designed to navigate periods of volatility.
Firms forecast exchange rates for hedging decisions, short-term financing decisions, capital budgeting decisions, and long-term financing decisions. There are two main approaches - fundamental analysis, which studies macroeconomic variables like inflation and GDP growth, and technical analysis, which analyzes historical exchange rate data. Factors like inflation rates, purchasing power parity, GNP growth, monetary policy, and relative economic strength between countries can influence exchange rate forecasts. No single approach can perfectly predict future exchange rates.
The document discusses the development of the Investment Rate, which aims to determine how much money will be systematically invested into the economy each year to define longer-term economic and stock market cycles. It describes how the author analyzed various economic data and theories before determining that the key factor was the life cycles of normal people. Through analyzing data on retirement planning, mortgage payoff timelines, and college education costs, the author was able to identify age 50 as the key "Kee Age" when normal people have both the means and motivation to begin investing aggressively for retirement.
Interest Rate Put Options
http://www.options-trading-education.com/24028/interest-rate-put-options/
With the possibility at hand that interest rates may fall, interest rate put options could be profitable. As with all options trading interest rate put options require a sound options trading strategy. Unlike trading options on stocks or commodity futures, trading interest rate put options do not have to do with a specific company or a commodity such as gold, corn or oil. Rather interest rates are driven by the economy and by the actions of the United States central bank, the US Federal Reserve. The Federal Reserve is cutting back on its monthly bond purchases, the quantitative easing stimulus plan widely credited from keeping the country from falling into a long term depression. As the Fed stops pouring money into buying US Treasuries and corporate bonds it serves to let rates fall and the value of existing bonds to rise. With this factor at work one would jump on interest rate put options as rates would be falling. But, there are more factors in play that might make calls on interest rates profitable ventures.
Interest Rate Options
An interest rate option is a derivative contract. The value of that contract is based on interest rates, typically the ten year Treasury note. When traders believe that interest rates will go up they buy calls and when they believe that rates will fall they buy puts. A trader with a call contract makes money when interest rates rise and a trader with a put contract profits when rates fall.
China, Europe and Housing Starts
China has seen its growth rate slow down. The response of the central bank of China has been to buy US Treasuries. This drives up the value of the dollar on Forex markets and drives down the Chinese currency. In addition, it can serve to drive interest rates back up because of buying pressure on the market. In addition, the EU is still struggling to get out of the persistent recession on its Southern flank and its stimulus programs may also drive the dollar higher. And, economists are pleased on one hand that the value of family homes is on the rise and on the other hand that that rate of increase is leveling off. This means that people that were upside down on their mortgages are in better shape. And, what do these factors have to do with interest rates?
The document discusses emerging markets and whether recent turmoil could lead to contagion as seen in 1997. It summarizes that while some emerging markets face issues like inflation and political unrest, economies are now stronger and the affected countries too small to significantly impact the US economy. The author believes recent emerging market weakness provides an excuse for investors to take profits after big gains in 2013, but that a correction would not be fundamentally driven given the ongoing economic recovery.
Signs of inflation will raise the stakes for the Fed’s policy communications. Favorable conditions for leveraged strategies could reverse quickly. Reasonable valuations and the Fed’s policy goals continue to support risk assets.
This document discusses inflation and monetary policy. It begins by defining average inflation over the last 50 years as around 4% according to the Consumer Price Index. It then notes that the market currently expects future inflation to be around 2%, in line with the Federal Reserve's target. However, it expresses concern that monetary policy interventions in response to the financial crisis, which dramatically increased the monetary base, could sow the seeds for higher inflation in the future if banks begin lending out excess reserves more aggressively. Fiscal policy interactions with monetary policy are also flagged as a potential issue to monitor regarding inflation.
The document discusses concerns about future inflation given recent monetary and fiscal policy actions. It provides three key reasons to be wary of inflation:
1) Monetary policy - The Fed has increased the monetary base significantly and its exit strategy from quantitative easing may be difficult. This compromises its independence.
2) Fiscal policy - The US government faces large deficits and debt levels that could put pressure on the Fed to pursue inflationary policies.
3) Interaction of policies - The Fed's actions during the financial crisis reduced its independence, making it harder to maintain low, stable inflation as fiscal pressures rise. Close monitoring of inflation is prudent given these challenges to monetary policy.
Similar to FOREX - FUNDAMENTALS MAKE CURRENCY PAIRS MOVE (1.3) (20)
Bonds included on the list are for inspirational purpose only and liquidity will vary. None of the suggested bonds constitute any form of trade recommendation to sell or buy.
Pricing source: Indicative prices from Bloomberg
Bonds included on the inspirational list are selected based on market liquidity. None of the suggested bonds constitute any form of trade recommendation to sell or buy.
Pricing source: Indicative prices from Bloomberg
Bonds included on the list are for inspirational purpose only and liquidity will vary. None of the suggested bonds constitute any form of trade recommendation to sell or buy.
Pricing source: Indicative prices from Bloomberg
Saxo Fundamental FX Portfolio for March 2011Trading Floor
This month the basis of the Saxo Fundamental FX Portfolio model, the proprietary macro strength indicators, have been revised to make them more comparable across economies. There is also a change to how funds are allocated in the portfolio model – from an absolute value to a percentage allocation, making the portfolio easier to use. Next month there will be an additional table detailing the changes to the portfolio allocation.
Back-test performance (December 1994 – February 2011)* EUR USD GBP
Stock market analysis: Apple, eBay INC,Google,Morgan Stanley,Western Digial Corp. and more. In the several sectors like finance, technology & basic materials. #stocktrading #stocks. By Saxo Bank's Tradingfloor.com team.
Global Value Equity Portfolio (March 2011)Trading Floor
This month we have adjusted our Global Value Equity Portfolio to include the reinvestment of gross dividends and introduced dynamic weights for the constituents. This reduces transaction costs, enhances excess return and makes the portfolio easier to replicate for investors.
Fibonacci analysis is the study of identifying potential support and resistance levels in the future based on past price trends and reversals. Fibonacci analysis is based on the mathematical discoveries of Leonardo Pisano—also known as Fibonacci. He is credited with discovering a sequence of numbers that now bears his name: the Fibonacci sequence.
Forex traders have to not only compete with other traders in the forex market but also with themselves. Oftentimes as a Forex trader, you will be your own worst enemy. We, as humans, are naturally emotional. Our egos want to be validated—we want to prove to ourselves that we know what we are doing and we are capable of taking care of ourselves. We also have a natural instinct to survive.
This document summarizes various technical analysis price patterns that provide insight into trader sentiment and expected currency pair movements. It describes continuation patterns like pennants, flags, wedges and triangles that signal a trend may continue, and reversal patterns like double tops/bottoms, triple tops/bottoms, and head-and-shoulders patterns that indicate a trend reversal. Each pattern is defined by characteristics like resistance and support levels, flag poles, breakout points and expected price targets. Recognizing these patterns can help traders identify entry points and projection targets.
FOREX - TECHNICAL ANALYSIS: TRENDS, SUPPORT AND RESISTANCE (1.4)Trading Floor
Charts, charts, charts. When most people think about trading Forex, they think about watching price movements flash by them on the charts and making money as they jump in and out of profitable trades. This is where traders show whether or not they have what it takes to be successful in Forex market.
Earnings Releases 21.February - 27. February 2011Trading Floor
Stock market analysis: Apple, eBay INC,Google,Morgan Stanley,Western Digial Corp. and more. In the several sectors like finance, technology & basic materials. #stocktrading #stocks. By Saxo Bank's Tradingfloor.com team.
Commodities on the radar - Weekly Commodity Update 1.2.11Trading Floor
- Speculative futures positions across sectors increased by 5% or 94,000 lots last week as hedge funds and money managers added to long positions.
- Investors added to short dollar positions, with the accumulated dollar short now at $30 billion, close to last year's peak of -$35.16 billion.
- Long positions in WTI crude oil rose by 21k contracts and positions in grains, which make up 56% of total speculative positions, rose significantly.
Earnings releases 7. February - 11.February 2011Trading Floor
Stock market analysis: Apple, eBay INC,Google,Morgan Stanley,Western Digial Corp. and more. In the several sectors like finance, technology & basic materials. #stocktrading #stocks. By Saxo Bank's Tradingfloor.com team.
Stock market analysis: Apple, eBay INC,Google,Morgan Stanley,Western Digial Corp. and more. In the several sectors like finance, technology & basic materials. #stocktrading #stocks. By Saxo Bank's Tradingfloor.com team.
Earnings releases 17. January - 23. January 2011Trading Floor
Stock market analysis: Apple, eBay INC,Google,Morgan Stanley,Western Digial Corp. and more. In the several sectors like finance, technology & basic materials. #stocktrading #stocks. By Saxo Bank's Tradingfloor.com team.
The Forex Portfolio remains firmly negative towards the USD and to a lesser extent towards the EUR though both net short positions have been reduced in January. The net short exposure to GBP is nearly negligible now
The Forex Portfolio remains firmly negative towards the USD and to a lesser extent towards the EUR. Both net short positions have not changed much in December, but the model has also turned quite bearish on the GBP
Saxo Asset Allocation for February 2011Trading Floor
Our Asset Allocation Model maintains its “Moderately Bullish” stance even though the
Global Business Cycle Momentum Indicator decelerated in January. The model suggests
big positions in equities and bonds
FX month(s) in review: Wild transition to the New Year.
Themes for 2011
Carry Trade Model – coming unhinged
Central Bank Watch: Expectations shifting higher
Saxo Bank G-10 FX Outlook
A toxic combination of 15 years of low growth, and four decades of high inequality, has left Britain poorer and falling behind its peers. Productivity growth is weak and public investment is low, while wages today are no higher than they were before the financial crisis. Britain needs a new economic strategy to lift itself out of stagnation.
Scotland is in many ways a microcosm of this challenge. It has become a hub for creative industries, is home to several world-class universities and a thriving community of businesses – strengths that need to be harness and leveraged. But it also has high levels of deprivation, with homelessness reaching a record high and nearly half a million people living in very deep poverty last year. Scotland won’t be truly thriving unless it finds ways to ensure that all its inhabitants benefit from growth and investment. This is the central challenge facing policy makers both in Holyrood and Westminster.
What should a new national economic strategy for Scotland include? What would the pursuit of stronger economic growth mean for local, national and UK-wide policy makers? How will economic change affect the jobs we do, the places we live and the businesses we work for? And what are the prospects for cities like Glasgow, and nations like Scotland, in rising to these challenges?
South Dakota State University degree offer diploma Transcriptynfqplhm
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Economic Risk Factor Update: June 2024 [SlideShare]Commonwealth
May’s reports showed signs of continued economic growth, said Sam Millette, director, fixed income, in his latest Economic Risk Factor Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
University of North Carolina at Charlotte degree offer diploma Transcripttscdzuip
办理美国UNCC毕业证书制作北卡大学夏洛特分校假文凭定制Q微168899991做UNCC留信网教留服认证海牙认证改UNCC成绩单GPA做UNCC假学位证假文凭高仿毕业证GRE代考如何申请北卡罗莱纳大学夏洛特分校University of North Carolina at Charlotte degree offer diploma Transcript
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby...Donc Test
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Unlock Your Potential with NCVT MIS.pptxcosmo-soil
The NCVT MIS Certificate, issued by the National Council for Vocational Training (NCVT), is a crucial credential for skill development in India. Recognized nationwide, it verifies vocational training across diverse trades, enhancing employment prospects, standardizing training quality, and promoting self-employment. This certification is integral to India's growing labor force, fostering skill development and economic growth.
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
2. You can learn to watch the fundamental economic indicators that
FUNDAMENTALS MAKE CURRENCY move currency pairs just like institutional investors do. In this section,
PAIRS MOVE we will explain the following to help you build a strong fundamental
foundation:
The key to making money in the Forex is understanding what makes
currency pairs move. Ultimately, it is investors who make currency pairs
move as they buy and sell different currencies, but these investors buy
Which fundamental economic indicators are most important
and sell for a reason. Either they see something happening
Contents
fundamentally in the global economy that makes them believe a
Why interest rates are so important
currency is going to get stronger or they see something happening
fundamentally that makes them believe a currency is going to get
weaker. In other words, they watch the fundamentals and make their What impact inflation has on interest rates
decisions according to what they see.
Fundamentals make currency pairs move. If the economic fundamentals
in the United States are improving, the U.S. dollar (USD) will most likely
be getting stronger because Forex investors will be buying dollars.
Conversely, if the economic fundamentals in the United States are
declining, the U.S. dollar (USD) will most likely be getting weaker
because Forex investors will be selling dollars.
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3. NOT ALL ECONOMIC INDICATORS ARE
One great way to take advantage of fundamentally driven
IMPORTANT
Example
price movement is to watch the news. You will learn how to
Globalisation has brought us all closer together and has brought profit from unexpected news when you complete the News
millions of pieces of information to our fingertips on a daily basis. Part Analysis section.
of becoming a successful Forex investor entails learning how to ignore
most of the news and information that bombards you every day so you
can focus on the important information. The most important fundamental economic indicators can be divided
into the following three groups:
Not all economic indicators are important. You will see many
fundamental economic announcements that you do not have to pay
much attention to. For instance, unemployment in Ireland is not as
- Interest rates
important as unemployment in the United States. While Irish
unemployment is certainly important in Ireland, the U.S. economy has a
- Economic strength
much larger impact on the global economy so investors watch U.S.
economic announcements more closely.
- Capital and trade flow
Remember, it is ultimately large, institutional investors who move the
Forex market so you want to watch the same things these investors are
watching. Doing so enables you to more accurately predict what moves You will learn more about economic strength and capital and trade
they will make so you can take advantage of those movements. flow indicators in later sections. In this section, you are going to learn
about interest rates—the most important fundamental economic
indicator in the Forex market.
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4. in Switzerland, you are most likely going to invest in the United
INTEREST RATES: THE MOST Kingdom.
IMPORTANT ECONOMIC INDICATOR So how does this affect the value of the British pound (GBP)?
Interest rates rule the Forex market. Currencies representing economies
with higher interest rates tend to be stronger than currencies As more and more people put their money in investments in the United
representing economies with lower interest rates. Investors are always Kingdom, demand for British pounds (GBP) increases. Basic economics
looking for the greatest return on possible on their investments, and tells us that as demand increases, the value of the British pound (GBP)
economies with higher interest rates usually have higher yields on their also increases.
investments.
Successful Forex investors always watch Central Banks (the
Imagine you are walking down the street looking for a place to put organisations that set interest rates) closely to see if they are likely to
your money and you see two banks, one on either side of the street. raise interest rates, lower interest rates or leave interest rates
The bank on the right side of the street is offering to pay 6 percent unchanged in the future.
interest on any money you deposit there. The bank on the left side of
the street is only offering to pay 2 percent interest on any money you
deposit there. Naturally, you would choose the bank offering to pay 6
percent interest because you want to make a better rate of return on
your investment.
The same principle applies to economies and their respective currencies.
If you can get a 6 percent return on your investments in the United
Kingdom, but you can only get a 2 percent return on your investments
3
5. The most important central banks are as follows:
INFLATION IMPACTS INTEREST RATES
Successful Forex investors always watch central banks to see what they
United States—Federal Reserve (The Fed)
are going to do with interest rates. Successful Forex investors also
European Union—European Central Bank (ECB) watch the economic numbers that central banks watch when making
United Kingdom—Bank of England (BOE) their interest-rate decisions so they can more accurately determine
what central banks might do.
Japan—Bank of Japan (BOJ)
Switzerland—Swiss National Bank (SNB) One extremely important economic indicator central banks watch when
making their interest-rate decisions is inflation. Inflation is a general rise
Canada—Bank of Canada (BOC)
in prices for goods and services. For example, you most certainly pay
Australia—Reserve Bank of Australia (RBA) more for a litre of milk or a loaf of bread than you did 10 or 20 years
New Zealand—Reserve Bank of New Zealand (RBNZ) ago. You’ve probably also heard people from earlier generations
comment on how expensive everything is these days. We all deal with
inflation.
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6. Inflation ran rampant in Germany after World War I. Brutal You, as a Forex investor, want to watch inflation rates to get a glimpse
economic instability caused the dramatic devaluation of the
into what central banks may do with their interest rates. If inflation is
German mark. You can get a sense of just how bad the
situation was by looking at the price of German postage rising, central banks will most likely raise interest rates, which is good
for the representative currency of that economy. You should watch the
Example
stamps. In April 1921, it cost approximately 0.60 German
marks to mail a letter from one city to another. However, by following two economic inflation indicators to get an idea of what
December 1923—merely 15 months later—it cost central banks are looking at:
approximately 100,000,000,000 marks to mail that same
letter from one city to another. While this is certainly an Consumer Price Index (CPI): the economic indicator that measures how
extreme example, it drives the point home that inflation will much a basket of goods that consumers regularly buy costs. The more
always be a part of our lives. money consumers have to spend on essential goods and services, the
less money they have to spend on extra goods and services.
Moderate inflation is generally accepted as a natural by-product of
economic growth. Too much inflation, however, can hurt an economy. Producer’s Price Index (PPI): the economic indicator that measures how
much producers must pay for the raw materials they use to produce
Central banks are always on the lookout for rising inflation. When they their finished goods. If prices for producers are rising, they will most
see inflation rising to uncomfortable levels, they do whatever they can likely pass those costs onto consumers.
to curb that growth. One tool central banks use to curb inflation is
interest rates—central banks can combat rising inflation by raising
interest rates.
Higher interest rates make it more difficult for businesses and
individuals to borrow money to buy and build new items, which slows
economic growth and, as a result, inflation.
5
8. Disclaimer
None of the information contained herein constitutes an offer to purchase or sell a financial instrument or to make any investments.
Saxo Bank A/S and/or its affiliates and subsidiaries (hereinafter referred to as the “Saxo Bank Group”) do not take into account your
personal investment objectives or financial situation and make no representation, and assume no liability to the accuracy or
completeness of the information provided, nor for any loss arising from any investment based on a recommendation, forecast or other
information supplied from any employee of Saxo Bank, third party, or otherwise. Trades in accordance with the recommendations in an
analysis, especially, but not limited to, leveraged investments such as foreign exchange trading and investment in derivatives, can be
very speculative and may result in losses as well as profits. You should carefully consider your financial situation and consult your
financial advisor(s) in order to understand the risks involved and ensure the suitability of your situation prior to making any investment
or entering into any transactions. All expressions of opinion are subject to change without notice. Any opinions made may be personal
to the author and may not reflect the opinions of Saxo Bank.
Please furthermore refer to Saxo Bank's full General Disclaimer: http://www.saxobank.com/?id=193
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