Understanding Currency Characteristics to Increase Your Forex Profits

As soon as you seriously consider Forex currency trading, fundamental analysis should come to mind. Fundamental analysis describes variables that have an impact on the value of a currency exchange pair. It is essential not just to conduct technical analysis according to your charts and indicators, but also to keep in mind any macroeconomic events which could impact the value of a currency pair. Learning the characteristics of the major world currencies is extremely helpful when you first begin to trade. Regardless of which pair or pairs you decide to trade, understanding their properties is incredibly beneficial because it assists you in becoming more accurate in each trade that you execute. The euro (EUR) is a particular currency that is reasonably new in terms of currency trading, as it only commenced dealing in the late 90s; however the EUR/USD pair is easily the most bought and sold pair in the Forex market. For this reason, the EUR/USD is extremely liquid. The euro is significantly impacted by interest rates. For anyone interested in trading the EUR/USD pair, it is important to observe the Euribor (Europe’s three-month interest rate), to observe any variations in investor tendencies when trading the EUR/USD pair because the USD and euro rates have an effect on one another. The EUR/USD is definitely a favored pair due to the numerous opportunities it provides for prospective trades. The Japanese yen (JPY) from Japan, is another major currency. Japan is considered the most significant overall economy found in East Asia; therefore, the yen is commonly used as an alternative currency that represents the economy of the entire Pacific Rim....