FOREX MARKET | FOREIGN EXCHANGE MARKET
The US dollar is the first currency and the most widespread and easier traded in all financial and commercial transactions and money and commodity markets in the world, the US dollar attract a lot of traders and became the focus of world attention, especially investors in the forex market has made big profits from active his movement with other currency pairs.
Economics and politics are two sides of a dollar coin: currency US dollar strength due to the strength of the economy where the US economy is the strongest economy in the world where a country’s currency strength is measured by several things including self-sufficiency that is, the volume of exports is greater than the volume of imports, and a continuation of our conversation about America, it imports little compared to the volume exported are exported many goods, especially industrial.
Of course, the other countries competing for the import of them and this increases the strength of the dollar market. In addition, all countries have agreed to adopt the dollar in Jima transactions among themselves, it is considered a unit has become a global measure of all goods evaluated through the dollar. Add to this the political influence enjoyed by the United States, which also supported economic clout economy is in need of a policy supported by leading the economy and politics here lies the other side of the political coin dollar.
Gold and oil against the US dollar: the United States has the largest reserves of gold in the world where owns approximately 26% of the gold found in the central banks in the world and this reinforced the status of a dollar coin to become more reliable currency, which in turn led to increased trading volumes and increased demand for it where it became the first reserve currency in central banks par excellence.
The US dollar has been linked to the oil became the oil is bought against the dollar in trading, according to the so-called (petro) and this has led to increased demand and thereby increase the volume. The emergence of the economic crisis has resulted in the decline in the US economy in 2007 to the collapse of most of the world because of the foreign investment that linked the countries of the world the size of the US dollar.
With the advent of the global crisis that hit America in the beginning of 2007 demonstrated the impact of the US dollar on the countries of the world in general economically stable countries in particular. Has been affected by this crisis is also, these countries could not go out alone from this crisis. This reflects the power and influence of the US economy.
The most important indicators that the forex market move for the dollar:
Non-farm sectors, salaries, personal spending, and the ISM Non-industrial (price index in economic sectors other than the industrial sector), inflation and home sales, and this is the most powerful drivers of market indicators as well as many other indicators but have no effect in the same degree this mentioned indicators are these indicators an important source of investors may lean in their trades.
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