Fundamental Beans

Major Currencies & Fundamentals


Jul.20.2013

prev
-
-
next

 

How does each currency react to fundamental news? Since fundamental analysis is only one point of the Invest Diva Diamond analysis, we should not take a fundamental element's ability to move the market for granted. But experience shows the major fundamental elements that are capable to move each major currency are as follows:

Danial Fig16 04

                  USD: The Oprah Winfrey (the Number One Ranked Celebrity, According to Forbes) of the Currencies

Rises When

- Interest rates rise.

- GDP rises.

- Inflation rate rises.

- U.S.nonfarm employment rises.

- And so on.

Declines When

- Interest rates declines.

- Terrorism occurs in theUnited Statesor theMiddle East.

- Other countries have a stronger economy than the United States.

Danial Fig16 05

                               EUR: The Jennifer Lopez (Second Most Popular Celebrity, According to Forbes) of the Currencies

Rises When

- Eurozone interest rates rise.

- The U.S.economy falls.

- The Eurozone economy grows.

Falls When

- Eurozone interest rates fall.

- One or more countries in the Eurozone are in economic trouble.

Danial Fig16 06

GBP: The Queen Elizabeth of the Currencies (her country is in the Eurozone, but her currency is too cool to join the euro)

Rises When

UK interest rates rise.

Oil prices rise.

Favorable financial indicator movement occurs.

Declines When

GDP or other important financial figures fall.

Terrorism occurs in the UK.

Middle Eastern relationships weaken

prev
next

Back to Top