Life as an investor in money markets revolves around certain data points that help you to make sense of the future. After all, currency trading is all about making predictions about a given currency pair's exchange rate. Federal funds rate and the London interbank offered rate (LIBOR) are very important data points that influence the foreign exchange's direction (forex) … [Read more...] about How Does LIBOR Differ from the Federal Funds Rate?
Fundamental Analysis
Learn how to trade events
2021 Fundamental Analysis Basics in Forex
The main hypothesis of Forex fundamental analysis is that the real value of a security may not match its price. Thus, the price may be incorrectly stated by several markets, but it gradually returns to the original price. The ultimate objective of fundamental analysis is to find out the original value of the security, weigh it up against the current price, and pinpoint an … [Read more...] about 2021 Fundamental Analysis Basics in Forex
Buy the Rumour, Sell the News in the Forex Market
You might have heard the term “Buy the rumor and sell the news” when conversing with other traders in trading circles or in educational resources focused on investing. It refers to the decision taken by the investor to acquire definite security based solely on rumors. The investor then subsequently sells it when positive news breaks out. It is a phenomenon that is noticed in … [Read more...] about Buy the Rumour, Sell the News in the Forex Market
Impact of National Interest Rates on Exchange Rates and Currency Values
Forex traders and central banks are always watchful of the rate at which prices rise in economies globally. Interest rates are what brings these two groups of people together. Inflation is a double-edged sword where a little bit of it is significant for economic growth, but too much of it is detrimental to the economy. Central banks base their interest rate decisions on … [Read more...] about Impact of National Interest Rates on Exchange Rates and Currency Values
Deflation And Its Impact On Forex Trading
Introduction Would you mind wandering back to your first income? Do you remember how many Whoppers the money could buy? It may not be easy to remember because not all of our shops at Burger King. Depending on how far back we are talking about, your income has probably grown. Hence it can buy more Whoppers. Still, let us, for a moment, think of someone who just … [Read more...] about Deflation And Its Impact On Forex Trading
