Trade The Journey

Trade The Journey

What I learned!

This has been another week of learning, of course. Last week or I would say the week before that, I begin to become interested in the Forex market. It caught my interest, its constantly moving and is open for 24 hours, 5 days a week.

It is a massive market known for its liquidity. The picture for this blog post is from babypips, its a good website for learning the Forex market and how it operates. You learn that commodities are apart of some countries currency, meaning commodities are responsible for the fluctuations in the currency of the country. Other countries peg their countries currency to a succeeding countries currency for various number of reasons.

“The price of oil has just went up” or “the dollar declined against the euro amid reports of tariffs” have new meanings to me. Every piece of news you hear affects the economy and in turn, affects the decisions made in the economy. The sentiment of a country affects its currency which trickles down to every other apart of the country.

What I did find interesting is that as a country raises its interest rates, it hurts it own countries inhabitants but increases the amount of foreign investments. So investments should increase in assets when interest rates increase? Still trying to grasp these ideas.

Visiting the central banks’ website has been a great experience. It helps to see the viewpoints of people in charge of steering the economy and their thought processes in making assessments of the direction of the economy. This probably been the best revelation.

Thoughts?

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