User:Mashalovesforex

WELCOME
Hello, my name is Masha. I love trading Forex.

Forex
Forex, short for Foreign Exchange, is the one of the most popular Financial market in the world. Forex market allows free trading on currencies from other countries.

Classical Finance textbooks believe Foreign Exchange market a particularly good place for arbitragers. This is realized by the fact that Foreign currencies are traded in pairs.

For example, euros are traded both in EURUSD and EURJPY. In a completely efficient market where there is no arbitrage, the rate to purchase USD while simultaneously selling JPY should be equal to the rate of EURJPY devided by EURUSD. However, this does not happen at all in the Foreign Exchange Market.

Most Popular Currency Pair
There is no doubt that the most popular currency pair is EUR/USD. The underlying reason is more than simple, since America and European union are the two biggest economic entities.

Top Five Most Traded Currency Pairs
Currency No.1: U.S.Dollar (USD)

Currency No.2: European Euro (EUR)

Currency No.3: Japanese Yen (JPY)

Currency No.4: British Pound (GBP)

Currency No.5: Swiss Franc (CHF)

EUR/USD
This currency pair was impacted by at least 28 Economic indicators. Industrial Report

is a reliable economic indicator. This report indicates the fluctuation in industry production, including factories and utilities. The report represents actual production related to what the production capacity potential is during a period of time. The industrial production and related capacity utilization figures are thought of as coincident indicators, which means that changes in the levels of these indicators often reflect the same changes in overall economic activity. The industrial production report also looks at percentage changes on monthly and yearly basis.

US Non-Farm Payroll
Nonfarm payroll. It tracks the addition or losses of jobs in last month. If the number of jobs increases in a stable and rapid speed, interest rates will become higher, which means that more Forex investors will drive in and the USD will be appreciated; while if the number decreases, the USD will be depreciated.

Interest Rates
Interests rates worldwide is a key factor in Forex fundamental analysis. Interests drive the forex rates to a great extent. Generally speaking, the interest rate rise will likely to appreciate the currency when nothing else changes, and vice versa. The underlying reason is more than simple, a rise in the interest rate will make the currency worth more in future. To counterbalance the effect, the currency has to appreciate. What forex traders see in interest rate is not like economists, who base on the change of the interest to calculate the generally effect on the economy. Forex traders believe the direction of the interest rate is more important. That’s because Forex traders take interest as a fundamental indicator, or fundamental signal. The directional change of interest indicates the market sentiment and perception is going to be affected much bigger than otherwise. However, if the central bank raises interest at consecutive periods, that’s a forex signal to investors that the currency rate is going to up probably quite significantly.