Fundamental Analysis

Central bank FX  interventions are actions taken by central banks aiming to devalue or strengthen their local currencies against foreign currencies. To achieve this, the banks can issue verbal announcements or take hands-on action, such as buying or selling specific foreign currencies. In order to counteract any negative effects on the local economy, part of the action … [Read more...] about Central Banks’ Interventions and the Impact on Forex

Bank reserves are the required minimum cash for all lending and deposit-taking financial institutions in a specific jurisdiction to have in hard cash at all times. The central bank of each country is responsible for determining the amount of minimum reserve. How does the reserve requirement work? The reserve ratio is determined by the respective country's central banks. … [Read more...] about Bank Reserve Requirements and Their Effects

Of all the existing currencies globally, investors have long considered the US dollar, euro, Japanese yen, and Swiss franc as safe havens for various reasons. A safe haven is a form of financial instrument which retains and sometimes increases in value during periods of broader market decline and economic turbulence. low-interest Most investors have a myriad of different … [Read more...] about The 4 Safe Haven Currencies of Forex

The US dollar is a free-float currency as its value fluctuates in response to supply and demand forces. In contrast, some governments try to fix the value of their native currency. The Chinese yuan is one such alternative whose exchange rate is usually under the mercy of regulators. The greenback appreciates and depreciates in response to market forces and zero government … [Read more...] about Factors Influencing US Dollar Depreciation

While turning in to the financial news, you might have heard the terms “hawkish” and “dovish” being mentioned in regards to central banks. These two terms are used to describe the monetary policies of financial institutions. When the financial institution authorities modify the interest rates, it has far-reaching consequences for the foreign exchange market. Interest … [Read more...] about The Impact of Hawkish vs. Dovish Financial Policy on Forex Trading