Foreign exchange fundamental analysis method

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Foreign What is forex rebate fundamental analysis method ma bestforexrebately studies the economic factors forexrebatenetwork trends that affect price fluctuations forecast and trend evolution, the most central step is the market participants to carry out rational analysis and evaluation of information data and consistently adhere to the use of their fundamental analysis method to study the changes in supply and demand, which itself is subject to economic, financial, government policies, social psychological and other factors affecting the Whatisforexrebate exchange All foreign exchange transactions involve the exchange of one currency for another, and the actual exchange cashback forex will be determined mainly by the supply and demand for the corresponding currency. The central banks participation in the foreign exchange market affects the exchange rate when it believes that intervention in the foreign exchange market is effective and that the outcome of the intervention will be consistent with the governments monetary policy. If the global situation becomes tense, it will lead to instability in the foreign exchange market, and abnormal inflows or outflows of some currencies will occur, and the final possible result will be significant fluctuations in the exchange rate. For example, at the end of 1987, due to the continuous depreciation of the dollar, in order to maintain the basic stability of the dollar exchange rate, the finance ministers and central bank presidents of seven Western countries issued a joint statement on December 23, 1987, and January 4, 1988, began to implement large-scale joint intervention in the foreign exchange market, selling a large number of yen and German mark, and buying dollars, so that the dollar exchange rate rebounded, maintaining the basic stability of the dollar exchange rate. For example, if you pay attention to the euro, you must have noticed that during the war in Kosovo, for three months in a row, the exchange rate of the euro fell by 10% against the dollar, one of the reasons is that the war in Kosovo formed downward pressure on the euro Balance of Payments The balance of payments of a country will lead to fluctuations in the exchange rate of its currency Balance of Payments is a summary of all the external economic and financial relations of the residents of a country The balance of payments of a country reflects the countrys economic position in the international arena and affects the countrys macro and microeconomic performance The impact of the balance of payments is ultimately a function of the supply and demand for foreign currency on the exchange rate. Foreign currency into domestic currency in order to put into domestic circulation which formed the foreign exchange market foreign exchange supply and because of a certain economic transactions (such as imports) or capital transactions (to foreign investment) is caused by foreign exchange expenditure because to be converted into foreign currency to meet their respective economic needs, in the foreign exchange market will produce the need for foreign exchange to these transactions combined, all recorded in the balance of payments statistics, will Constitutes a countrys foreign exchange balance if foreign exchange income is greater than expenditure, then the supply of foreign exchange increases; if foreign exchange expenditure is greater than income, then the demand for foreign exchange increases the supply of foreign exchange increases, in the case of unchanged demand, directly prompted by the price of foreign exchange decreases, the value of the currency rises accordingly; when the demand for foreign exchange increases, in the case of unchanged supply, directly prompted by the price of foreign exchange rises, the value of the currency When the dominant interest rate in one country rises or falls relative to the interest rate in another country, the currency with the lower interest rate will be sold and the currency with the higher interest rate will be bought due to the increased demand for the currency with the higher interest rate, so the currency will appreciate against the other currency Lets look at an example to explain how interest rates affect the exchange rate: Suppose there are two countries a and b, neither of which As part of the monetary policy of country a, the interest rate of that country is raised by 1% while the interest rate of country b remains unchanged. There is a huge amount of short-term liquidity in the market, which always flows between countries in search of the best interest rate. When capital flows out of country b, large amounts of country bs currency will be sold in exchange for country as currency. This raises the demand for country as currency, with the result that country as currency strengthens relative to country bs. The above example is for a two-country scenario, but in fact, with the internationalization of markets today, it is equally applicable on a global scale. This trend has greatly facilitated the free flow of international short-term capital (sometimes referred to as hot money), and it is important to note that investors will only move funds to regions or countries with high interest rates if they believe that exchange rate movements will not offset the returns from higher interest rates. The market operator must correctly understand the reports or data that are published, such as foreign exchange balance data, inflation indicators, economic growth rates, etc. But in reality, before the reports or data are made public, there is already an expectation or judgment about the substance of the reports or data that will be reflected in the market before the reports or data are made public. Reflected in the price once the real report or data and peoples expectations or judgments are very different, will lead to significant fluctuations in the exchange rate only can correctly understand the various economic indicators and data for a foreign exchange trader is not enough he must understand the market will not be published indicators and data to make what expectations and judgments speculative behavior market operators of speculative behavior is also an important factor affecting the exchange rate In the foreign exchange market directly associated with the international trade of the transaction is relatively small proportion of most transactions from the essence of the speculative behavior, this speculative behavior will lead to the flow of different currencies, and thus have an impact on the exchange rate when people with foreign exchange analysis of the factors affecting the movement of the exchange rate after the conclusion of a currency exchange rate will rise, the race to buy, so the currency rise into reality Conversely, when people expect a currency will fall, will be competing to sell, so that the exchange rate decline for example, after World War II for a period of time, due to the political stability of the United States, the economy is running well, low inflation, and economic growth in the early 1960s reached an annual average of 5%, when the world is willing to use the dollar as a means of payment, store wealth, so that the dollar exchange rate continued to rise but to the late 1960s and early 1970s, due to the Vietnam War, the Watergate scandal, serious inflation and increased tax burdens, trade deficits, and declining economic growth rates caused the value of the dollar to plummet

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