european union(EU)from27Composed of member states, it is composed of1951year6Developed from an alliance of neighboring countries. Constrained by the Maastricht Treaty, the European Union has gradually evolved into an economic and political bloc, becoming the world's largest economic zone and playing a significant role in international transactions and global economic affairs. In EU member states ...
Overview of the United States50Composed of states and a federal municipality. Most of the country's territory is located in North America, but some of its territory is located in the Pacific Ocean. since1776year7month4Since gaining independence from Britain, the United States has become an economic powerhouse in the West and even the world. As the world's largest economy ...
Today we're going to travel around the world, but there's no need80Days. If you can keep up, we just need to80You can make one revolution in seconds Or not! Regardless of the situation, we guarantee that you can understand the basic information of major economies and the factors driving the economy forward. For every country we will visit, ...
As we mentioned earlier, if a person wants to invest in a specific stock market, they will need local currency to purchase stocks. You can imagine the stock market, such asDAX(German stock market)What effect will it have on currency. In theory, whenDAXWhen rising, we can expect the euro to ...
Nikkei Index and US Dollar/Japanese yen in2007Before the outbreak of the global financial crisis in, when most economies experienced consecutiveGDPWhen negative growth occurs, the Nikkei Index and the US dollar/The trend of the yen shows a negative correlation. Investors believe that the performance of the Nikkei Index reflects the state of the country's economy, so if the Nikkei Index rebounds, the yen will rise ...
The problem with using global stock markets to determine foreign exchange trading is that you need to know who guides who. This is like answering an old question, "What comes first, chicken or egg?" or "Who is your father?!" Is it controlled by the stock market? Is it still led by the foreign exchange market? The basic idea is that when a country's stock market rises, it is important to ...
Do you know that the stock market can also be used to measure currency movements? To some extent, you can use stock price indices to predict the direction of the foreign exchange market. Based on what you see on TV, hear on the radio, and read in newspapers, you will find that the stock market is the most reported financial market. Can purchase ...
Brief review: We discussed how differences in returns serve as indicators of currency price movements. As the bond spread or interest rate difference between two economies expands, the currency of a country with higher bond yields or interest rates appreciates compared to the currency of another country. Similar to bonds, fixed income securities are a type of fixed payment ...
Bond spread refers to the difference between bond yields of various countries. These differences have led to the emergence of arbitrage trading. By monitoring changes in bond spreads and interest rate expectations, you can know how the currency portfolio is moving. As shown in the figure below, the bond yield difference between two economies has increased, and the currencies of countries with higher bond yields are relative to bonds ...
A bond is a "promissory note" issued by an entity when it needs to raise funds. These entities, such as governments, municipalities, or multinational corporations, require a large amount of capital to operate, so they need to borrow from banks or individuals like you. When you own government bonds, in fact, the government borrows money from you. You may want to know ...
Now let's talk about another type of gold... the black one. You may know that crude oil is also known as "black gold" or our favorite term is "black cocaine". A person may not have gold, but if you have a drug addiction, you cannot do without cocaine. Oil is a major source of energy for the global economy ...
Before we can clarify the relationship between currency trends and gold, we first need to understand that the fit between the US dollar and gold is not very high. Usually, when the US dollar appreciates, the price of gold decreases. vice versa. The traditional logic is that when the economy is unstable, investors will short the US dollar and choose gold. Unlike other assets, Huangjinneng ...
Have you ever thought about why the US dollar tends to strengthen during economic downturns and booms? Okay, others have similar questions. In fact, a clever brother who once worked at Morgan Stanley proposed a theory to explain this phenomenon. Former currency strategist and economist Ren Yongli proposed a theory and applied it ...
You must be thinking, 'How can I use it in trading?' Don't worry, there will be an answer soon. We know that the vast majority of widely traded currency pairs contain the US dollar. If you don't know, please listen, like euros/USD, GBP/USD, USD/Swiss franc, US dollar/Japanese yen and US dollar/All included in Canadian dollar transactions ...
The Federal Reserve will also use another form of dollar index. We call it the 'Trade Weighted Dollar Index'. The Federal Reserve wants to create an index based on the competitiveness of US goods relative to other countries' goods, which can more accurately reflect the value of the US dollar relative to other countries' currencies. The trade weighted US dollar index is formed by1998year ...
