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FOREX traders must understand economic cycle

Economic Cycle is a key topic to be understood by any FOREX trader that will be successful. You must be able to predict the next step of the market movers so as to position well for profitable trades.

Hello this is copper effects and i am israel you i mean we spoke about in the videos you know talking about these things specifically when it gets to some point it becomes bad you begin to see that i cost-of-living comes and because of course if if the sellers or traders know people who offer consensus we know that the economy is booming and the money it’s much

In circulation the ike the price of goos increase the price of those so there is a cost of living and this become big it begins to get straining to the populace and that leads us to the interest rate that is this is when the the one of the factors or a major factor whenever you see inflation the next thing you must know that we should come to your mind is interest

Rate so if a company when economy talks about inflation pin i just know that most likely do we increase your interest rate now increase in the interest rates mix you know because the interest rate is i then the the commercial parts will be able to give us money again not because they don’t want to give ever because the people in the economy won’t be willing to

Take the loans don’t be willing to take the loan because of the i interest on the loans so this will automatically reduce the money in circulation does you have cotton in inflation and since immediately the interest rate comes in something happens it’s automatically increases the value of the currency because when currency begins to get scarce is just a law of

Supply and demand when it when n time again to discuss the price of such goods or commodity becomes i so when the interest rate is i you expected a currency value will increase so when the currency value increases its causes demand to be high of course when there’s i value for something they demand from investors to be i now remember that as a forex trader you

Think like the investor so the demand for a currency with a hive is very from external investment of the currency value has risen so since the chorus of others resent this will increase the exports so you see that the exports of such economy will be higher because many people will want to get that currency and and of course you see the economic super pass come

Here you see the value begins to increase the economy outlook generally begins to increase so you can see that there is a continuum in this when you could get to see if you go back to one again and then you begin to control the economy over and over again always know that government policies that the fiscal policies and monetary policies that the policy’s on

With central bank’s always turn out towards maintaining a stable economy no economist be too strong are not economical to be to also be too weak that is something that he must understand that we haven’t really needed to technical analysis in that there is a range of movements for a currency pair when aquarius is getting to i the government once i mean in value

Now when the current is getting to her in valley the coral government automatically wants to reduce it and when it’s getting too weak the government also increases so this is a secret to trading forex and i want to believe that with this video you’ve been able to understand the economic growth cycle and this will help you in better analyzing fundamentally thank

You please if you do have any question just reach out to us and make us know how we can help you we are only willing to help thank you for following coverage

Transcribed from video
FOREX traders must understand economic cycle By Kabod FOREX