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How to speculate on foreign exchange according to exchange rate policy?

Post Time:2020-01-10 17:11:19  By:BG

  The profit that can be obtained by speculating in foreign exchange is very considerable. Foreign exchange speculation is an important investment method in the current financial market, and it is a very popular investment project for investors. So, how to speculate on foreign exchange according to exchange rate policies?
 

 
  The so-called exchange rate policy is a very important factor in fundamental analysis, because the country's exchange rate policy is sufficient to affect the price fluctuations of the foreign exchange market, thereby affecting investors' foreign exchange transactions. If the exchange rate policy is ignored during the foreign exchange investment process, investors' transactions are likely to fall into a blind market sentiment, miss profit opportunities, and even cause unnecessary capital losses.
 
  Specifically, what kind of exchange rate policy a country implements mainly depends on whether such a policy can protect or maximize its own interests. Even in the country's international relations, exchange rate policy plays a very important role. Therefore, from a certain level, exchange rate policy also belongs to the political aspect, and foreign exchange transactions are also based on financial commodity investment at the international political level. Therefore, the country's exchange rate policy has a significant impact on the process of foreign exchange speculation.
 
  So, in foreign exchange investment, how should we speculate on foreign exchange according to exchange rate policies? Generally speaking, a country's exchange rate policy is mainly reflected in two ways: the simpler and more popular situation is that a country's central bank in the policy bulletin, or It is the explanation of the country ’s exchange rate policy in the policy statement, that is, the official document, which is also relatively easy to obtain, because there are often reports in international news; the other way is that a country's senior financial officials-mainly the central bank governor Treasury ministers, our speeches in international conferences and speeches, the exchange rate policy revealed through this channel will be a bit more obscure than the information disclosed in official documents, but it is more effective and targeted, but it requires our patience to experience .
 
  In the market, the official will ensure the implementation of exchange rate policies in various ways. Whenever the market moves against the expectations of the official, the official will intervene. The most common is verbal intervention, which generally only Make a statement or press conference; the most extreme way is for the official to directly enter the market to intervene in a series of market changes.
 
  In foreign exchange transactions, investors should clearly understand their exchange rate policies and the exchange rate policies behind the major currency pairs in the market. Only by clarifying the direction in this respect, can you choose a suitable currency pair for trading in foreign exchange investment. The main reason is to avoid unnecessary losses caused by the lack of understanding of the currency exchange rate policy. This is the last mistake that all speculators should make Foreign exchange is of course risky, and what we have to do is to try to avoid it and maximize the benefits without causing losses.


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