Forex it’s quite similar to the stock exchange, in which company shares are bought and sold according to the positioning of these in the market. In Forex, specialists make projections of the location of global currency through two kinds of analysis and with the results obtained they provide advice about which currency is most favorable to sell and to buy.
Success, earnings, failures and losses in Forex are directly linked to decisions that the investor make regarding the currency pairs they decide to negotiate by day and week.
The instability in this currency market is due the fact that’s not a centralized system and the prices and values hardly stay stable per day, which is why if somebody wishes to invest in the currency market it’s advisable to have a specialist in the field.
Decentralization favors Forex as it doesn’t have any type of limitation and the investments are only tied to the liquidity capacity.
The currencies best placed in Forex in early 2017
Closing 2016, specialists were quite positive regarding the dollar and the Japanese yen against the Swiss franc. During this period the currencies were thought to be more predictable, however the dollar came into a new phase.
There are two strategies to determine the best options in which to invest in the Forex market: Technical analysis and fundamental analysis.
The first is based on the currency’s recent prices on the market; and the second is much broader, since it studies factors surrounding each currency and the country of origin, such as economics, politics and events; Depending on these results, it’s decided whether it’s worth to invest or not.
However, specialists during early 2017 have guided themselves by the fundamental analysis, as everyone is waiting for the results and actions that’ll take place by the new President U.S., Donald Trump, because the measures he’ll take will certainly influence worldwide economy and for the time being, without any official decision, any result would be pure speculation.
Thus, so far the results have been the rising of the dollar and fall of the Japanese yen and the Swiss franc. And these results have been relatively accurate, as the dollar continues rising against other currencies, such as the Euro, which fell 0.23 percent.
However, the Euro, a currency which projections were unfavorable to invest, remains steady versus the dollar. The first days of January the Euro closed with losses and recovered the next day. And the euro, in comparison to the sterling pound and the Japanese yen is located with 0.08% and 0.30% revenue respectively.