Inside the Currency Market - Mechanics Valuation and Strategies

About $2 trillion are exchanged every day in the global currency markets-about 60 times the volume of trading on the New York Stock Exchange-with the most active trading occurring between the U.S. dollar, the Euro, the Japanese yen, the British pound, and the Swiss franc. Spot currency prices move in the markets based on factors of interest rates, but interest rates between two nations, rather than one side of a currency pair.§In order to understand a currency pair combination, both sides of the pair must be considered from a two-nation perspective. How does the second nation calculate and factor interest, and what are the market instruments that track the various rates that trade every day in order to track a trade throughout the various markets? Inside the Currency Market outlines the two-sided currency pair trade from a whole host of perspectives as it relates nation-to-nation, addressing currency pairs from the eight major countries. And it answers a key question: what are the components, the constituent factors comprising the second side of a currency pair equation, and how should those factors be considered in terms of a trading strategy?§Throughout these pages, author Brian Twomey shows how currency movements are impacted by a variety of factors, including interest rates, trade balances, inflation levels, monetary and fiscal policies, and the political climate. He also discusses fundamentally driven trades based on interest rate differentials and trade imbalances as well as technical trades involving chart patterns, trends, and trading ranges. And he reveals how successful traders use both fundamental data and a variety of technical tools to trade within this market-as well as describing both the underlying dynamics that drive the market and the strategies that can help you capture consistent profits in it. Inside the Currency Market explains virtually every element of this market and can function as a desk reference that puts everyday events into context for traders.§The currency market continues to generateinterest and attract new retail traders due to the many opportunities available within it. This book will show you how to successfully operate within this arena by making the most informed trading decisions possible.Inside the Currency Market§A comprehensive reference guide forcurrency traders§While many books offer insights on currency trading, no one volume has provided a complete understanding of the market and its trading strategies-until now. Inside the Currency Market offers in-depth discussion of both the underlying dynamics driving the market and the key strategies employed by traders.In it, author Brian Twomey supplies comprehensive information on the structure of the market, its role in the global economy,the forces that drive currency values, and trading strategiesand tactics.§He provides detailed discussion on gathering and analyzing global financial data so that traders can get an informed "big picture" perspective that will help identify profitable trades. Twomey also addresses fundamentally driven trades basedon interest rate differentials and trade imbalances, as well as technical trades involving chart patterns, trends, and trading ranges. In addition, traders will gain a complete understandingof how global financial flows, derivatives, and other markets such as oil and gold impact currencies.§If you want to capture consistent profits in currency trading with a full comprehension of market factors, this is the book for you.