The Currency Market And The Search Of New Influences Part 1
Now dependence of market Forex on news of the large companies speaking about merge, stock market reactions, becomes more and more significant.
Certainly it is not possible to see every day as the currency market Forex comes under the influence of laws of New Market economy. But 3th February there was one of them. The central European Bank has made an interest rate raising on 0,25 points in the morning of this day. Thus, euro has moved extremely unusually, having fallen downwards in relation to US dollar.
Already after a dinner of the same day, in information channels there were messages obout a victory of companies Vodafone Airtouch PLC (England) which works in the mobile communication market, over the competitor Mannesmann (Germany) and the decision on purchase of the German company for $183 billion. Such news was reflected by euro jump on 2,5 cents, having made an indicator equal 99 and a half cents.
Such movements in the market Forex under the relation of currency pair euro/dollar cannot disregard that fact that modern traders trading in the market Forex, conduct information searches about that where to spend the investments, absolutely in other directions than earlier. After all before, only decisions on fall or increase of interest rates from National Banks could affect seriously easing of currency or its strengthening in short time intervals.
This sort of decisions, showed force of interest to securities of this or that country from other states. The trading analyst of Alfonso who worked in broker firm J.P.Morgan and Co said that serious traders speculating in differences interest rates, always applied bonds. For example strengthening of a position of dollar in averages of 80th years, has been caused by the highest in the USA interest rates that has led to a multi-billion stream of foreign investments in US Treasures.
Certainly, importance of investment history and long-term trends of economic growth of the country in influence on exchange rate is conclusive, but in an operating time with small time intervals to cost to make decisions on sale or currency purchase, being based on the interest rate as many traders do.
For last year in the information search, traders have started to pay attention to absolutely other sources for drawing up of forecasts of movement of the prices in the currency market. Among the most interesting, there were news about purchase or merge of the huge companies and corporations internationally. The overflow of the foreign capital and investment investments from other countries also began to interest.
If you want to participate in forex trading should start from learning the basics of this market to make sure you do not have problems with this industry.