Thursday, March 14, 2013

Fundamental Factors

To correct the orientation of the foreign exchange market or (FOREX MARKET), it must be closely monitored by the following factors, reflecting the state of the economy of the countries.

 It causes a tendency to decrease the cost of the national currency. Otherwise, the higher the national profit abroad reduces the cost of foreign currency. This happens because of "the country's propensity to import": the increase of national income leads to increased imports of almost the same amount that the increased domestic consumption.

The investors are looking for more foreign debt, bonds, stocks, bank deposits or cash, they propose up the price of foreign currency. The payments to other countries in a particular state contributed to the increasing rate of its currency.

The factor, which determines the interest group of capital, which is strongly related to currency deduction. If we only on the spread of goods and payments for current transactions, the foreign exchange rate, could have been boring and fluctuated only.

In behalf of the political leaders there is such a thing as "ogovarivanie course." This means that at several point in time when the currency reaches levels that are critical for an rigorous state, they set in motion to say that, in their opinion, the course is not available on that they will not allow additional movement is potential that the envelopment and because these people are afraid to trust, or their powers and knowledge, then their words are beginning to have a direct impact on the market.

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