Canada Forex Rates
Credit Suisse Fx Strategy – Forex Trading requires paying close attention to news
Credit Suisse strategist
One of the key factors in the value of currency is the interest rate. The higher the interest you pay on your money a country, the more than money's worth in relation to other world currencies.
Interest rates are determined by the central banks led by economic developments.
Therefore, economic news can dramatically affect foreign exchange transactions. This means that currency traders should be on top of news around the world. Credit Suisse Fx strategy
Some economic news is important because it is a guide to how a new plant can or can not change interest rates in the near future. This is certainly the case with anything that affects a country's Gross Domestic Product (GDP) Price Index Consumers (CPI) trends in the short or long term. Other changes in foreign currency positions news immediately.
In one MARKET wizards Jack Schwager books a currency trader successful (pre-Internet) attributes its success to everyone to have a large network of inside information to keep abreast of relevant news affecting to currency values worldwide.
Consumer spending obviously affects the GDP of a country and the economic outlook.
In the United States Key consumer confidence sentiment indicators are surveys by the Conference Board and University of Michigan. The European Commission published a survey of a trust once a month. In the United Kingdom, the GFK Group and National Building Society each key issue, the consumer confidence reports. The Cabinet Office of Japan published an estimate of consumer confidence. Australia has the WESTPAC-Melbourne Institute Consumer Survey The feeling is published monthly. In New Zealand, the WESTPAC-McDermott Miller Consumer Confidence Index is published quarterly.
Of course, the feeling is just a guide. Sales is where the rubber to the road, so a field sales report that is more important. In the U.S., UK, Japan, Switzerland, Canada, Australia and New Zealand, the government issues reports retail sales. Eurostat reports retail sales of EU countries. Credit Suisse Fx Strategy
Merchants can check the Institute U.S. for Supply Management's manufacturing and nonmanufacturing indexes are published monthly and the Commerce Department report on orders for durable goods. Europe has a retail purchase managers index report. For Canada Managers Ivey Purchasing Index check. "Markit Economics has index Purchasing Managers' one "for the EU, the United Kingdom, Japan and Australia. For New Zealand, go to NA business. The case of Switzerland, Credit Suisse reported SVME PMI.
Of course, all forex traders need to know to keep the data eagle on trade because the balance of trade figures in dramatically affect values regarding currency trading.
Of course the interest rate and central news is of paramount importance. Watch the U.S. Federal Reserve the European Central Bank, Reserve Bank of New Zealand, the Bank of Japan, Bank of Canada, the Bank of England and Swiss National Bank.
Also pay attention to what these bankers say. A statement from the Federal Reserve, Ben Bernanke, of the danger of inflation or deflation can be a vital clue future trends.
Of course, keeping up with this data is not easy even for a country, let alone all developed countries the world. But that is what moves currency markets. You must keep abreast of changes in the demand for a coin or the other. Credit Fx Suisse Strategy
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Chapter 5, 18, 19: Exchange Rates Clip 1