Foreign Currency Market

Yen/Dollar is one of the most used couples at forex. Actually the yen is the official currency of Japan since 1871 and it is represented by different metals according to its value. There are six kinds of currencies and four circulation bills. One yen for example is made of aluminum, five yenes of tin and ten yenes of bronze.
The yen history has different sides that makes it a very interesting currency. The evolution of this currency has taken it to positions similar to dollar.
The yen value was fixed according to the rules of the world exchange rate where every currency was quoted according to the american dollar. A dollar was equal to 362 yenes. This exchange rate yen/dollar was in force from 1949 to 1971, year in which the United States let the dollar float free. Since then, yen/dollar has reduced its difference, having actually an exchange rate of 110 yenes per dollar.

How does information influence our lives? What is the importance of news at forex?. News are information that is useful for those that want to know what to do in the world that they frequent, the simplest information will give us an outlook to confront reality.
Being updated with forex news is one of the most important points while learning and even more important when you are beginning to invest your money.
Internet allows us to have access to news on real time making our decisions easier while thinking about where to put money. For example, if the day news were that euro has set up a record regarding to dollar, having this information make us have an advantage regarding to other people. You can take advantage if you are updated with the world news, you only have to know how to understand them.
News at forex, as in any place, are updated minute to minute, and if our aim is to earn money, knowing what happens at financial world is essential. You should be updated every day so that news at forex become your allied and not the enemy that puts in risk your investment.

foreign currencies value depends on the movements of the capital markets, even if markets are made of many elements as companies, private banks, public bank or particular investors. These actors put in risk their money and while doing it, they also take part their emotions and expectations, that make them take decisions according to information and the mood of the markets. The psychological factor many times is the one that motivates the market and so foreign currencies value. At forex market an investor behaviour can generate a chain effect and modify others’decisions making foreign currencies prices change. The foreign currencies value at forex are at this level: For example, the couple USD/JPY (dollar in front of yen) is in recovery, actually it quotes in 110.16 per dollar. Regarding to the foreign currencies value at forex of the pair EUR/USD (euro in front of dollar), it is actually having a backward movement in its quotation at 1.4608 dollars per euro. The pair USD/CAD (dollar in front of canadian dollar) is quoting at the moment at 0.9544 canadian dollars per american dollar. The traders try to break the resistance at 0.9715. The relation EUR/GPB (euro in front of pound) quotes at the moment at 0.7048 pounds per euro. The foreign currencies value of this european pair has the characteristic of floating in a floatation band from 0.7100 to 06546.

It seems as an old new, but it is not so. The relation between foreign currencies dollar euro is still showing the decline trend of the dollar in front of the euro. Information was told by the Federal Reserve, that showed at the financial market that the economic grow was less than expected, it has produced other historical minimum in the relation dollar euro.
The european common currency has been appreciated 0,83% reaching to U$$ 1,4832 at the exchange values and ending at 1,4777. What is asked by many now is when will the euro break the barrier of U$$ 1,50, that is not so far away as we can see. The analysts find not very original causes while thinking about the relation dollar euro. Most of them say that it is beacuse of the bad indicators for the american economy as for example the GP would raise between 1,8% and 2,5% in 2008, against the previous forecast that showed a raise of 2,75%.
During this week it was said that the Federal Reserve of the United States would lower again the cost of the money making its exchange rate similar to the european one, that is actually in 4%. If we confirm these news the situation of the foreign currencies dollar euro would get even worse, as dollar would continue falling. Until now there is no macroeconomic scenario that show a possible recovery of the dollar in the short term. This situation makes crude exporters countries worry, as the low of the american currency influences directly their profits.

The dollar, the most common foreign currency is having a very changing year. It is not only losing againg the euro, the most commercialised currency, but also against other foreign currencies. Apart from the brasilean Real, which currency is at the top of the ranking with an appreciation of 21,4% against the dollar, the other foreign currencies are gaining positions in front of the american foreign currency but slowly. Regarding other foreign currencies, the canadian dollar rise to 18% (the currency had been 1 to 1 with the american currency). Other foreign currency that is in the top ten of the ranking is the euro with a profit of the 12,30% in the year. On the other hand, the Swiss franc gained a 10% in the year and was one that got the maximum against the dollar yesterday. It is said that this currency is used as value refuge while volatility scenaries. Other foreign currency that was appreciated this year was the yen that gained 8% in 2007 and since some years has been promising more, but is still not very high. The problem is that the Japanese interest rate is very low and this provokes an stagnancy of the nominal value of the Japanese currency.