It has been an interesting month for economic news and since Christmas sterling has been under pressure, caused mainly by the credit crunch in the US
Those in the UK have long been awaiting positive steps for the pound in the currency exchange market and after it was predicted that house prices were beginning to level out, the pound experienced a 3 month high in the foreign currency market on April 15th, 2009.
Numerous factors affect foreign exchange rates including politics, economic variables, supply and demand and capital market conditions. The latter is of particular interest to those buying Euros, owing to the economic climate in Europe. It’s not limited to business imports – plenty of people need to buy Euros for property purchases abroad.
When you’re making regular international money transfers, you need to study trends on the foreign currency market. For example,if you are buying dollars, and the price looks weak, you may be able to get round this by setting up a forward contract. This is where currency brokers like us at Pure FX come in. Our …
The OTC (over the counter) nature of the foreign exchange makes for a highly volatile environment. Trading locations are tightly linked and billions of trades are being made each minute. With only a finite number of currencies to trade, this means that at any one moment there may a large number of price quotations for …
The global foreign exchange, commonly known as Forex, has a daily turnover in excess of $3.2 trillion, and this is steadily increasing each year.
When you are buying dollars, sending money abroad or more, it is important that you follow the trends in foreign exchange rates. Moving average charts, which map out these trends, are important tools of the trade for currency brokers like us at Pure FX. So what are moving averages, exactly?
Economists talk of today’s foreign exchange market as being based on free floating foreign exchange rates, and worry about too much volatility in the system. In fact, not much has changed since the days of fixed parity and the Bretton Woods agreement.
Common foreign exchange derivatives include spot trading, futures trading, swaps, OTC forward trading and options. For regular household or business currency exchanges, OTC (over-the-counter) brokers like us at Pure FX are used. However, certain derivatives e.g. futures trading have to be dealt with through an exchange. In Europe, the main one is Eurex.
The foreign exchange futures market is comparatively new, but has grown rapidly in recent years and now accounts for around 7% of the foreign currency exchange market. Forex futures were started in 1972, by the CME (Chicago Mercantile Exchange).