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Forex money exchange
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As a Forex trader, there are many trading methods that will help you to attain the success of an online trader. You must begin following current events as they have a profound effect on the Forex market. We teach you how to trade these very important news events by providing you with enough systems and techniques. You end up asking the question as to how you can maximize your gains and limit your losses. This is not so easy to do unless you know exactly what you are doing.
China seems to have made good on its promise to stabilize the currency. The Yuan/Dollar exchange rate seems to be only one of the few bulwarks of stability if you check the Forex market. One Dollar trades for about 6.83 CNY which is what it traded for last summer. Futures prices reflect a mean expectation in that only a year from now, this exchange rate may only slightly dip to 6.86 CNY/USD.
Dollar Crashes
Having lowered the interest rates to about zero, the Federal Reserve will focus on 'quantitative easing'. That means that it is about to turn on the printing presses. It will buy more than $1 Trillion credit instruments. The Federal Reserve is financing the U.S. debt that was issued by the Treasury. In case the Obama administration decides to push through yet another stimulus package, then the dollar is basically finished.
When this news was announced, the U.S. Dollar fell by 2.7%. This is the highest daily margin since 1971. The dollar is now selling off as this may contribute to weakness in the currency in the long run.
It seems that China is fighting the Forex market by trying to prop up the Yuan's value. If this exchange-rate was determined by the market, the Yuan would now show signs of weakening. This implies that authorities are selling their dollar reserves because China wants to stabilize the USD/CNY exchange rate.