Find Other Equities that Provide Insight into the Housing Market
In this assignment, the trader should select the top equities that represent aspects of the housing sector and start watching their weekly performance. When these housing equity stocks start probing their weekly support, resistance, and trend lines, the trader will have clues as to a potential change in the housing market. As discussed earlier, housing provides a strong indicator regarding interest rates throughout the world. For example, as 2006 ended, the situation in Great Britain regarding...
New Zealand Dollar Kiwi
The New Zealand dollar, also known as the kiwi, should get more of the attention of forex traders. New Zealand is almost a classic example of how fundamentals can drive currency movements. The New Zealand economy is small. It exports about 2.8 billion and imports 3.4 billion. Since its consumer economy is small, the fundamental characteristic that affects its economy is whether its exports can grow. Therefore, interest rates and the resulting currency valuation are key to its future economic...
Canadian Dollar Loonie
Canada has experienced significant economic growth, surpassing 1 trillion of gross domestic product GDP . Its robust expansion led the Central Bank of Canada to increase interest rates to 4.50 percent as of July 2007. This currency's fundamental personality reflects its big sister, the United States. The United States is Canada's major trading partner, reflecting the fact that the U.S. dollar receives a weight of 86 percent in the trade-weighted basket. Refer to Table 7.2d. Therefore, when the...
Fundamental Personalities of Currencies
If each currency's value is a reflection of the underlying economy of its country or region, we can begin to think of them as having a fundamental personality that can guide our strategies for trading. This chapter focuses on how a trader can gain an understanding about the strength and weakness of a currency. The concept of a trade-weighted currency basket is introduced as well as how to obtain the latest trade-weighted information and data that can be directly used in trading. TRACKING...
Find the MEW Rates in Canada Australia and the United Kingdom
This will take some exploration on the Internet, but it is worth tracking. What is important to realize about fundamental analysis of housing sector data is that the trader can identify pending changes in trends and direction of the economy. Of course, it is true that forex prices move all the time in reaction to news and the like, but economies don't change direction overnight. By understanding housing data, one can develop a fundamental viewpoint that leads to trading strategies before...
About the Author
Abe Cofnas has been the forex trading columnist of Futures magazine since 2001 and has been a leader in designing and delivering forex training courses. He has conducted seminars in the United States, London, and Dubai as well as online training in all time zones. Mr. Cofnas founded www.learn4x.com in 2001 as the desktop forex trading industry started to provide education and training in this field. He recently founded www.currencygames.com, a company providing forex education and global forex...