Outside influences on the currency market

As with stocks and shares currency markets fluctuate, this can be measured in cycles and for investors there is added opportunities, buying stocks will see the value go up or down and it is not measured against anything else, the price of BP shares for instance will rise and fall with the oil market and/or the economic situation at any given time, the only outside influence is when something happens specifically to BP, as with the oil spill a few years ago, for those investing in stocks such as these the principle idea is to buy at a seemingly low price and sell at a higher price hence making a profit.
The added opportunities for those investing in currency is the range of pairs available, so for example you start with £5000 sterling, you buy Euros because of the strength of sterling or the weakness in Euro in the hope that at some point the roles will reverse and when selling back the Euros you come out with a profit in Sterling, but here is the rub, in the meantime the US Dollar weakens against the Euro so then the opportunity comes to buy Dollars with the Euros and so it goes on maybe exchanging many pairs until the investor ends up with Pound Sterling again, hopefully more than the original investment amount but this is not always the case.
In recent weeks we have seen the banking officials imprisoned for fixing exchange rates, we are now seeing the Chinese government ‘managing’ their currency, trying to boost their export economy. To be fair this has been done many times over the years by many countries, self-preservation will always prevail. But what impact does this have on us lowly brokers, currency companies and most importantly clients?
The most difficult part is seeing this coming, for those who watch the markets closely, trends begin to appear and analysts are able, with some sort of certainty predict which way currencies are heading, that information is relayed to us and we pass on to our clients who are looking to make the most out of their international payment obligations but from time to time we are thrown a curve ball and we have to react to it.
The reason for writing this? Well, things go wrong with planning and forethought, things can go horribly wrong when there is no planning in place at all, for all of those out there, especially in international business, currency planning should be high on your agenda, companies like ours charge nothing for information and advice, we can help plan and advise on your future requirements, use us.
We have spoken to many companies after they have hit one of these situations, we like to speak to companies before, so that when something comes out of leftfield we have already softened the blow with being proactive and placing some protection against this.
We are happy to discuss your requirements through, providing you with a written report and recommendations, we are independent and as stated before we charge no fees, let us help you take back some control of a some-time volatile market.

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