Forex depends on the real economy

The trend of forex is not only financial alchemy, predicted by the charts and instruments in the hands of forex analysts, is also a direct consequence of the real economy.

In practice, the forex is a reflection of economic relations between nations or in the case of the Euro, between different economic areas. For example, take the case of the endemic weakness of the euro is not due to speculation, is due to the insane practice of European governments to inflate their debt up to capacity, forgetting that sooner or later, that debt must be paid. Or perhaps bad faith, knowing that that debt will never be repaid.

Here, therefore, that the euro is weakened because international investors have sensed


that something's going to happen, some European country will soon be forced to declare the default or, more likely, Europe will have to bear a costossissimo rescue

Tags: , ,

Leave a Reply

Please note: Comment moderation is enabled and may delay your comment. There is no need to resubmit your comment.

Hide me
Sign up below to download FREE Day Trading Software!
Name Email
Show me