Want to be in Safe Havens?

Hi Everyone

I am hoping everyone is enjoying their week of trading. Not much happening in the market except a few little moves. Greek and French Bailout has certainly made the market volatile and US election has added more weight into that volatility.

For those who are new in Forex trading how does volatility matter and what difference does it make to the market?

Well it makes a huge difference and most of the currency can go down or up by as much as 200-300 pips in a day. When market is volatile and there is risk of any sort then most of the traders and banks try to go for safe havens. Some of the currencies are considered as safe havens like USD & CHF. These two currencies are considered the biggest safe havens and then come Gold in commodities, which are also considered as safe havens. So when there is some volatility or recession in the world than the most of the traders starts buying safe havens to make their money safe.

Some countries government likes to keep their currency value down because of there export business. Countries like China and Japan wants their currency value down compared to other currencies. Export in those countries is the main driver of economy. Japan generally intervenes in their currency value so when Japanese Yen goes up against other currencies Japanese government will start selling more and more Japanese Yen to bring the value of Japanese Yen down.

Some traders think that it is impossible to track or find out which currency will go up or down. I believe that it is not impossible but hard and if you do what other successful traders do then it is possible. All you need is right tools, techniques, indicators and News. It might not give you 100% accurate number but certainly can give you most accurate anyone can get.

Petrol Prices and Commodities Prices drive some of the biggest currencies values in the market so when petrol or commodity prices goes down their currency value goes down…It will be discussed and explained in my next Blog post…

I will keep giving more and more knowledge here until most of the guys trading with eToro are making consistent profit or at least who are reading my blogs and following me.

If you want more updates and want to learn more and more about forex trading feel free to contact me, follow me or even copy me.

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