Tuesday, December 11, 2007
Forex Day Trading System - How does Oil Prices effect Forex market?
Forex Day Trading System - Does Oil Prices effect Forex market?
Yes, they truely do..Oil price has good, if not strong, coorelation with the currency pair movement.
The movement of oil price in any direction is due to the demand and supply. If the demand of oil is more, the price will increase else otherwise. Since, USA is not a producer of oil, increase in demand will essentially mean that USA will have to import more oil and at a higher price.
This will effectively mean that the USD will intern become weaker aginst the currency of the country from where the oil is being imported.
Currently, USA imports oil primarily from Canada. So, no wonder CAD is currently very strong against USD.
But, does the oil price effect all the forex pairs? I don't think so. I guess its only in the currency pairs where currencies are from oil trading nations.
This information is very important when placing trade in USD/CAD currency pair. If the USD/CAD market looks to be pro USD using any forex day trading system or swing tarding, it may not be true.
Thats all in this session..Feel free to join my newsletter by entering information in the box below. Keep visiting to learn more about forex day trading.
Yes, they truely do..Oil price has good, if not strong, coorelation with the currency pair movement.
The movement of oil price in any direction is due to the demand and supply. If the demand of oil is more, the price will increase else otherwise. Since, USA is not a producer of oil, increase in demand will essentially mean that USA will have to import more oil and at a higher price.
This will effectively mean that the USD will intern become weaker aginst the currency of the country from where the oil is being imported.
Currently, USA imports oil primarily from Canada. So, no wonder CAD is currently very strong against USD.
But, does the oil price effect all the forex pairs? I don't think so. I guess its only in the currency pairs where currencies are from oil trading nations.
This information is very important when placing trade in USD/CAD currency pair. If the USD/CAD market looks to be pro USD using any forex day trading system or swing tarding, it may not be true.
Thats all in this session..Feel free to join my newsletter by entering information in the box below. Keep visiting to learn more about forex day trading.
Labels: currency pair, forex day trading, fundamental analysis, oil price, USD/CAD
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Hi,
I enjoyed reading your blog and sure picked up some piece of knowledge. Keep up the good work.
Olisa
http://forexxtrader.blogspot.com
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I enjoyed reading your blog and sure picked up some piece of knowledge. Keep up the good work.
Olisa
http://forexxtrader.blogspot.com
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: 10:37 PM
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