Bank Interventions and its Effects - Page 58
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Thread: Bank Interventions and its Effects

  1. #571
    At any point in time , apex bank of any country might decide to devalue the nation currency whenever economic situation of the country calls for that . That will obviously affect the forex market especially if it happens to be one of the major currencies like USD , GBP and EURO. There are so many ways by which apex banks like FED, , BOE, ECB and all others achieve this . It takes a good understanding of fundamental analysis to decipher how market may react to this kind of news .

  2. #572
    Quote Originally Posted by layigold View Post
    At any point in time , apex bank of any country might decide to devalue the nation currency whenever economic situation of the country calls for that . That will obviously affect the forex market especially if it happens to be one of the major currencies like USD , GBP and EURO. There are so many ways by which apex banks like FED, , BOE, ECB and all others achieve this . It takes a good understanding of fundamental analysis to decipher how market may react to this kind of news .
    Good for us we can only worry about this once or few after months because every news that related to bank interest rates is released once a month or two. Seriously the damage of interest rate hike or cut is really amazing to trade with. What I do not really like about is when market moves only in spike, creating 50 pips up and 50 pips down and only show us a thin line without knowing where else to go. Nonetheless, their effects are frustrating and satisfying at the same time.

  3. #573
    Bank intervention would either strengthen or weaken the currency concerned and either of these scenarios provides good opportunity for forex traders who have sound knowledge of fundamental analysis to make money . Before you can take any of economic news indices successfully , you must have mastered fully the aspect of fundamental analysis of the market because market usually experiences a wild move during the time this kind of news on bank intervention hit the market

  4. #574
    Quote Originally Posted by layigold View Post
    Bank intervention would either strengthen or weaken the currency concerned and either of these scenarios provides good opportunity for forex traders who have sound knowledge of fundamental analysis to make money .
    It is a normal thing for the bank intervention to either strengthens or weakens a currency. The reason is that the bank interventions will come out in different fashions, at times, it will be target the inflation or deflation condition. At times, it will be to deliberately weaken the currency of the country so that the trade balance will be positive. At times, it might have indirect negative effect of the economy before a positive impact will later come out of it.

  5. #575
    Aside from permitting you to limit losses and remain in the game longer, stops likewise reduce the stress in trading. Holding a losing position without a defensive stop fundamentally increases the level of stress, which prompts irrational reasoning, particularly with regards to unpracticed traders. Moreover, the further the price goes the other way, the more the stress raises and starts to overwhelm your psyche.

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