Dec 2, 2008

ForexGen Shows Factors Influence Currency

ForexGen explains several things that influence in Forex currency price movement in the fundamental analysis:

Forex fundamental analysis - USD

· Price of gold. USD up Gold down and vice versa.

· USD follows the USD Index.

· Bond and share market

· US economy depends to oil import.

Forex fundamental analysis - CAD

· Canada is a 5th gold producer and 14th oil producer. So change of gold and oil price will influence the CAD value.

· CAD is direct proportional with commodity (gold and oil). Commodity up, CAD up and vice versa.

· Canada economy is very sensitive with US economy. US down, it will give the bad effect to Canada economy because company in US will reduce the import activity from Canada.

Forex fundamental analysis - EUR

· European Union (EU) consist of 15 countries i.e. Austria, Denmark, France, Belgium, Finland, Greece, German, Italy, Ireland, The Netherlands, Spain, Luxembourg, Portugal, Sweden and United Kingdom. Many of them use Euro as their currency.

· The most important economic news is from German, Italy and France.

· Movement of EUR/USD is very important to indicate the strong/weak EUR and USD currency.

· Forex fundamental analysis - GBP

· GBP is direct proportional with price of energy.

· Many EU country import oil from UK.

· Increasing in oil price will make UK strong in energy export sector.

· Strength/weak of GBP can be seen by EUR/USD. The movement of EUR/USD will effect the GBP/USD movement.

Forex fundamental analysis - JPY

· Bank of Japan (BoJ) will try to make Yen weak because the strength of Yen will give a bad effect to export sector in Japan (the price of product will increase).

· Japan is depends on oil import. The highest price of oil will avoid economy production in Japan due to increasing in input and raw material price.

· EUR/JPY movement will influence or be influenced by USD/JPY. GBP/JPY and AUD/JPY also can effect to EUR/JPY and USD/JPY.

Forex fundamental analysis - CHF

· Switzerland is forth bigger gold holder in the world.

· The strong gold price, the strong CHF

Forex fundamental analysis - AUD

· Australia is third bigger gold producer in the world.

· The increasing in gold price will increase AUD price.

Forex fundamental analysis - NZD

· NZD is direct proportional with AUD.

· If commodity price (gold) strong, CHF will strong and also make NZD strong.

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