Course 8
If you’ve traded stocks, you’re probably familiar with all the indices available such as the Dow Jones Industrial Average (DJIA), NASDAQ Composite Index, Russell 2000, S&P 500, Wilshire 5000, and the Nimbus 2001.
Just like any currency pair, the US Dollar Index (USDX) even has its own chart.
I bet you’re wondering, “How do I use this USDX in my trading arsenal?” Well, hold your trigger finger and you’ll soon find out! We all know that most of the widely traded currency pairs include the U.S. dollar.
There is also another kind of U.S. dollar index. It was created by the Federal Reserve and is now used widely by lots of sexy people, like economists and currency analysts.
The Bloomberg Dollar Spot Index (BBDXY) tracks the performance of a basket of 10 global currencies against the U.S. dollar.
Ever wonder why the U.S. dollar strengthens both in times of tough luck and when the economy is booming like a Beyoncé single?
Before we detail the relationship between the com-dolls and gold, let’s first note that the U.S. dollar and gold don’t quite mesh very well.
Let’s talk about the other kind of gold… the black one.
Historically, the price of oil is inversely related to the price of the U.S. dollar. The explanation for this relationship is based on two well-known premises.
A bond is an “IOU” issued by an entity when it needs to borrow money.
The bond spread represents the difference between two countries’ bond yields.
A quick recap: So far, we’ve discussed how differences in rates of return can serve as an indicator of currency price movement.
Did you know that equity markets can also be used to help gauge currency movement?
One issue with using global equity markets to make forex trading decisions is figuring out which leads which.
Let’s see how the forex market can affect the stock market, specifically stock indexes.
As we said earlier, in order for someone to invest in a particular stock market, one would need the local currency in order to purchase stocks.
Intermarket analysis studies the relationships between asset classes, typically currencies, bonds, commodities, and stocks.
Today we’re going to take a trip around the world, but it ain’t gonna take 80 days. If you’re fast enough to keep up, we can probably get around in just 80 seconds!
The United States of America is comprised of 50 states and a federal district.
The European Union (EU) is a brotherhood of 27-member states which started from a tiny gang of six neighboring states in 1951.
The United Kingdom is a land of many accents as it is actually composed of four countries – England, Northern Ireland, Scotland, and Wales.
Konichiwa! Located in East Asia, Japan is an archipelago of 6,852 islands, although a majority of its landmass is accounted for by the 4 largest islands.
Oh Canada… Uncle Sam’s friendly, environment-loving, French-influenced, semi-frozen buddy up north.
Officially known as the Commonwealth of Australia, Australia could be found somewhere in the Southern Hemisphere, just southeast of Asia.
If you’ve seen the Lord of the Rings, then you probably know that Middle Earth is located somewhere along the hills of New Zealand.
Switzerland was founded in 1291 and is located in the middle of western Europe and shares much of its history and culture with Germany, Austria, Italy, and France.
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