What is happening is that stocks, bonds, commodity and currency markets all over the world have a hand in each other's trading businesses. This is why fundamental analysis in the currency market from forex forum is a subject that is so massive, it defies discussion to a certain point. There are even new literature coming out that states how other markets, especially the bond markets, can be used to trade in the Forex market much more effectively. Stranger things have happened as recently, people only looked to the Forex market as a single entity within itself with some connections with general world issues to affect its market psychology. For example, the equity market is one market that can impact the currency market in a variety of ways and how this happens is when marker rallies happen in the DOW and NASDAQ, this means that there are impressive gains in certain equity performances. When this happens, foreign agencies and governments will be interested in the peaking performances of these integers and foreign investments will literally come pouring in. The money coming in can only serve to prop up the US dollar further more, increasing its value and its overall hold on the Forex market.
Why this happens is that they need to sell their own currency to purchase US dollars to participate in the DOW and NASDAW markets. This means there will be an influx of powers buying US dollars in large amounts, which will only serve to push the value of the US dollar further up the Forex market. When this happens in forex trading, other currencies in the Forex market will get affected as the US dollar climbs higher and higher. Of course the opposite also holds true in this regard, and if foreign money pours out, then it will have a negative effect on the almighty greenback.
You can also look at things like mergers and acquisitions all across the financial markets all over the world. You can look at the performances of overseas markets and how they will, in turn, favour the US dollar. When one dollar goes up, one dollar goes down somewhere else in the world. Information can be used everywhere and anywhere, you just need to be able to know where and when to use it best. In the end of the day, there is no limit to what you can do to make money on the Forex market. This is Forex trading education.
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