Foreign exchange investment note basic knowledge points

  • 2023/2/24 22:59:07
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  • forextradingsessiontimes

forex trad cashback forexg session times exchange, that forextradingmarket, foreign currency or foreign currency expressed in a foreign currency can be used for international settlement of the means of payment Chinas foreign exchange regulations promulgated in 1996, Article III of the specific content of foreign exchange as follows: foreign exchange refers to: ① foreign currency, including banknotes, minted ② foreign currency payment certificates, including bills, bank payment certificates, postal savings certificates, etc. ③ foreign currency marketable securities including government bonds, corporate bonds, stocks, etc. ④ special drawing rights, European currency units ⑤ other foreign currency-denominated assets In order to grasp the medium- forextradingtime long-term trends, some of the most driving fundamentals, we must first understand: 1. The impact of interest rate differentials This is the theme of the foreign exchange market in 2005 If the level of interest rates in one country is relatively higher than that of other countries, it will stimulate the inflow of foreign funds, thereby improving the capital account and raising Europe, Japan and other economies are not as strong as the U.S. economic development, global funds are flocking to the U.S. medium- and long-term Treasury bonds, the result of foreign capital to the U.S. dollar to buy a steady stream of sustained support for the dollar exchange rate 2. inflation rate and trade balance original theory that the difference between domestic and foreign inflation is the dominant factor in determining the long-term trend of the exchange rate, based on the judgment called purchasing power parity but in fact However, historical data show that there is no direct negative correlation between the exchange rates of the two countries and their inflation rates, but rather the central banks determinants are stronger The current U.S. inflation rate of 3.8%, higher than the EUs 2.3% and Japans 0.5%, but the Federal Reserve is concerned about the adverse effects of inflation and continued to raise interest rates, resulting in the dollar carry advantage continues to emerge, also indicating that interest rates are the most powerful driving force in the current currency market Balance of Payments. The trade deficit in the previous year became a nightmare for the U.S. dollar market generally believes that the huge U.S. current account deficit is difficult to make up, it is necessary to devalue the dollar to ease, so there was a huge sell-off of the dollar but now the U.S. capital inflow data can offset the trade account deficit, the influence of the U.S. balance of payments issues thus weakened 3. economic data and central bank action these two factors dominate short-term market behavior economic data is very complicated, and can influence the market in the short term. Short-term can influence the market and central bank intervention, mainly because the central bank as a powerful financial force, in the short term to buy or sell a large number of currencies on the market impact Understanding technical analysis: After a preliminary understanding of some fundamental elements, the idea that relying on fundamental judgments to enter the market safer, there are also risks often sometimes news in the rumor has influenced the market, after the confirmation is back to The starting point for investors with relatively less easy access to information, to profit from the old news, obviously quite difficult while technical analysis is quite subjective, but it contains a reflection of the markets influence on a variety of factors, especially the psychological expectations of the entire market, which is not available from the fundamentals Classic technical analysis are Dow Theory, trend lines, candlesticks and other analysis, of course, no one method can be a hundred percent, and for The same method, different investors can have different interpretations, the key is to develop their own view of the market pattern For foreign exchange investment just starting friends, you can see the trend as your good friend various trends on the chart will often add some averages, you can roughly grasp the direction of the trend is a more rational way to enter