 Wysłany: Śro 9:30, 16 Mar 2011 Temat postu: nike dunk skate shoes 7120 |
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| Forex Trading And Housing Sector Data
Housing data is one of the most important components of projecting currency moves and in anticipating a change in the interest rate policies. Interest rate changes affect the currency pairs drastically. Rather,blue timberlands, whatever market you trade, interest rate plays a pivotal role in all financial markets. Interest rate increase always appreciates a currency while an interest rate decrease causes depreciation. As a forex trader, you should anticipate these interest rate changes. The best way to anticipate interest rate changes is by watching the housing sector. Now, housing sector is a reliable indicator in almost every country that has a floating currency. Housing sector is linked with dozens of other sectors in the economy. When the housing sector slows down, it tends to slow down the other sectors as well. This general slow down of the economy forces the central bank to lower the interest rates to encourage more economic activity. In the same way, when the housing sector overheats, it causes inflation in the economy. Central banks have a mandate to control inflation. They are forced to increase the interest rates. Thus by looking at the housing sector data, you can easily form a picture about the expected interest rate changes in the economy. Interest rates are very important for the currency market. If you can anticipate interest rate change before time, you can make a lot of winning trades. Now,nike shox r4 shoes, you need to know whether the USD (US Dollar) is bullish or bearish. You can form an opinion on the market sentiment about USD by watching the housing equities. Housing equities can give a lot of information about the US housing sector and how it is expected to do in the near future. One of the best known housing market stock is KB Homes. KB Homes is one of the largest single family homes builder in the US. The stock prices of KB Homes can be taken as a leading indicator of the performance of the US Housing Market. If the stock is doing well, you can take it as a sign that the US Housing Market is performing well and if the stock is not doing well, it means that the housing sector is slowing down. Suppose, you trade GBPUSD pair,north faces! In July 2006, an uptrend in GBPUSD pair started that lasted for many months. The currency movement went to historical highs against the US Dollar (USD) and then retraced back at the end of 2007. What was the main cause of the trend reversal. The major cause has been the fall in the housing prices in UK housing market after a decade long boom that ended around 2007 when the home mortgage crisis reached its peak in the UK housing market. Now, if you had been following this trend, you would have observed that the currency pair GBPUSD followed the slowdown in the UK housing market. Now,nike dunk skate shoes, you must be thinking housing sector may be important for the US and UK economies only. No, you can use housing market date in Australia to trade AUD (Australian Dollar). If you have been following Bloomberg last year, you must have known why AUD rose. The reason was simple, when the home approval rates surged, AUD appreciated. Japanese housing market data can be used to trade the Japanese Yen (JPY), one of the important global currency. Similarly, you can trade NZD (New Zealand Dollar), CAD (Canadian Dollar) and other currencies using the housing sector data in those economies as a leading indicator. Topics related articles： tod 3177 choo 6780 puma shoes for women 8140 |
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