Forex

How do you make money by trading currencies that are closely correlated?

Correlations do exist, but whether they are between two currencies, or a currency and a commodity(or even interest rates) they are dynamic relationships and change constantly. Sometimes a currency pair is the flavour of the month, whilst at other times, for no apparent reason, the pair loses its lustre. Hence you need to be closely…

What are the most important fundamental indicators affecting the AUD/USD?

To start with, it’s worth pointing out that the key factors in the Australian economy at the moment are commodity prices, global growth, stgeloping countries, interest rates and consumer debt. The impact of commodities on the economy comes through both demand and price; since 2002 the price of commodities has doubled, bringing a significant income…

What is the carry trade and how can traders profit from it?

Over the past few years, the carry trade has been a major talking point in the financial markets. It is often mentioned in the news because a large number of investors use it as a trading strategy. The strategy is based on the economic theory of supply and demand since funds tend to flow into…