FX rates are down?

  • Posted by Blair Pedersen on February 18, 2019 in Global Economies Global Money Transfer

forex rates are down

Foreign exchange rates, like all cyclical things in life go up and down

As a general rule, a currency’s valuation generally trends in line with the fortunes of the respective country but there are many other influences, the health of the global financial markets, the monetary policies of foreign central banks, natural disasters and so on. Due to these many factors country’s economic cycle cannot be predicted with absolute certainty and consequently trading currencies is a very difficult thing to do. Nobody has control over the direction of a currency, but everybody has control over their personal finances and so it is incumbent upon everybody remitting money overseas to ensure they are getting the most out of their money transfers.


The Predictive Power of the Kiwi


predictive_power_of_the_kiwi_trading

Question: What do currencies say about an economy? Well that’s a trick question because the answer is everything and nothing at all

See, in today’s trading markets a currency means nothing unless it’s compared against another national currency (or perhaps the price of gold). When you compare a currency against another currency, not only can it be a potential indicator of economic strength relative to other economies, but it can also tell you the general global financial mood, the appetite for risk, the stage of economic cycle – both domestic and global, about the state of inflationary pressures and about other macroeconomic and environmental forces.