Forex trading is rising in popularity amid inflation and geopolitical strife. Here’s what you need to know.
When people think of investments, they tend to think of the stock market. Stocks certainly get the most attention in the financial media. Other markets, such as bonds and commodities, also garner significant interest. However, there’s one financial market that is larger than all the rest put together in terms of trading volume. That is the foreign exchange market, or forex for short.
The strength of the dollar should stop accelerating when the Fed stops hiking, said Krosby. But there are outside forces that could keep the USD’s value sky high even after the FOMC calls it a day: The current weakness of the euro and other currencies isn’t just about the Fed. It also reflects fears from investors of an impending recession in Europe. They’re flocking to the safe haven that is the dollar, at least for now. Expect the greenback to stay strong for a while.
I thank xerty for that remark, and I agree wholeheartedly.
I have been meaning to post on this matter, on this thread, for a while:
The dollar is very strong and could become even stronger after next Wednesday. I have been racking my brain in an effort to seize advantage of this situation before it evaporates. It’s a “strike while the iron is hot” sort of thing. I am most fortunate in that my assets today are overwhelmingly in USA dollars.
Any thoughts you might have along these lines would be most welcome here. How are you profiting from this situation?
That’s a pretty safe bet if you’re time horizon is into winter. When half of Europe has to nationalize their utilities, and issue bonds to pay for the oil/gas, the Euro will have to take a hit.
As long as reporters can continue to cover Joseph Robinette Biden in a blind positive way, the greenback should stay stable while the Euro, and probably GBP, slides down the ramp. I won’t bet against the GBP, though. They may not have a pretender, after all.
I cannot get over the value of the dollar here. Dinner last night was two steaks, two desserts, a bottle of wine, and 10% gratuity for 70 bucks. A couple of very large empanadas and fries for lunch was $10. This is supposed to be the most expensive city in South America. Argentina later this week should be interesting.
On top of that, we feel safer here than most cities in the US. They’re doing something right here.
If you can, it is a great time to be abroad with dollars.
We are in Argentina now. Just got back from La Azul in the Uco Valley. I kid you not - $25 a head for a 5 course meal with wine pairings where they leave the bottle on the table for you to take as much as you want with each course. I got a ribeye while my wife went for the pork. A meal like this would have easily been $250+ from where we are from. The bottles of wine, which would easily go for $40-$50 in the US, are $5-$10 here.
The cambio guys near the McD in Mendoza have treated me well too - 270 pesos today per dollar.
I know some Spanish from 20 years ago in school but holy cow I’ll learn more of it to cash in on this. You live like a king here for next to nothing.
TOKYO, Oct 22 (Reuters) - The Japanese government and the Bank of Japan conducted yen-buying, dollar-selling intervention in the foreign exchange market, the Nikkei newspaper said early on Saturday, citing a source.
