Invisible enemies in the foreign exchange market

Invisible enemies in the foreign exchange market

Exaggerated movements in exchange rates have a juicy opportunity to make money

The currency is the strength of the economy, at least in theory, where each currency from your certainty, your business financing to make the principle and its applications in the synthesis of cyclic, because it needs flexibility and growth in exports and financing of your ability, promoting entrepreneurship and her husband, the formation of expectations on interest rates and balance the relationship between competitiveness and the environment.

His movements are very hard to predict, because the others weaken variables to improve performance and productivity and institutional investors and the need for conversion to be, every move controlled, as in the same proportion in the exchange rate may be the best allies, enemies can be malignant and invisible. Also if economic maturity must be taken into account by Exchange, monitoring should be folded bets in emerging markets, increasingly out of control inflation and increase the competitiveness of the correction than usual with downs.

Benefits and risks of exchange rate fluctuations on the market, but fears of Donald Trump, underwhelmed, were especially their economic policy decisions for the North American market by the river and to protect the services from abroad, such as China, Europe or Mexico, which can cause sudden movements, the dollar now prices in other currencies (stronger Yen and pound weak) Euro or renminbi).

The Spanish economy at macro will influence the highs and lows of the past, although they are limited to Spain and changes in our trading volume can be tangent to investment, but are even more intense on the economic conditions. Global Business Spanish, worldwide, but specially created the currency symbol in North America, Latin America and the United Kingdom and sensitivity levels directly reflect those changes, for better or worse, income, relationships and, of course, the value of the company. All messages are sent, the new master of the White House, are all practices that are not necessarily true to your real intention, for the time being a substantial appreciation of the dollar, the Fed would lead an expansionary monetary policy starts to drop.

In Europe, only the copy of the withdrawal of stimulus policies of the European Central Bank for the buck is compensated. But anyway, everything in dollars and the company's corporate and business in the United States by storm accounts revaluation surplus and double espresso in United States dollars, the results of the work in an investment environment in the region.

Another problem is the Trump protectionist and determined; In the work is particularly sensitive, more vulnerable sectors of the economy to the Bissau Mexico as well as in the American continent, such as Spain, have an interest in the banking and energy sectors, fashion or concession of the remaining work. Debt defense mechanisms, the exchange rate of the investment companies and insurance, but consumers should refer to the integration from the result of the balance of foreign currency. In the case of Spain, you can be sure that the ibex in foreign currency threatens almost all businesses, because more than half of its sales outside Spain. And forget is not the opinion of experts, however, exchange rate movements are exaggerated the possibilities for profitable investments in money and exposure is juicy compared with your company.