With gold seen once more as a strategic asset, central bank buying has been steadily on the rise. One obvious reason is to diversify foreign exchange reserves away from US dollars.
This post looks at three alternative strategies that you can use to trade Japanese yen. Yen has some unique attributes that set it apart from other currencies. It is the third most traded currency after the US dollar and the euro.
The Australian dollar suffered a further blow today after the government’s official figures showed that GDP was much weaker in the second quarter than expected. GDP rose by 2% on the quarter a year earlier.
The reverse carry trade is what’s called an event driven strategy. It’s not a trading system you can use every day – yet at the right time it can generate enormous profits very quickly, and is therefore one you should keep up your sleeve ready to use.
Because interest rates and the debt markets have such a significant effect in forex, it pays to keep a close eye on them. It isn’t enough just to wait for the announcements and guidance from central banks.