The green back has been on the rise against just about all of the major foreign currencies in a fairly consistent manner as of late. Even with the liquidity in the Forex market, that shows how well a currency is performing against its peers, there are other underlying factors that we’ve discussed before. The USD’s strength is evident in the fact that both the price of oil and gold have been declining. This is of prime importance in that when foreign nations are buying resources such as oil, they are required to pay in USD meaning that they must first buy those US dollars before buying oil, for example. Another important point to note would be that countries which rely on these dollar denominated natural resource as an export that features prominently in their economies will be receiving less actual dollars for those resources. This means that their currencies don’t buy as much as they did about 10 months ago.

A few cases in point would be the commodity driven economies of Canada and Australia among others, that had seen their currencies rocket past the US dollar 9 to 11 months ago. The currencies of these two countries have retreated since then. Does this mean that the dollar has hit its low and is well on its way to a more commanding position on the world stage? We can’t be sure, but you will want to keep track of the economic performance in foreign countries, particularly in how their major banks and lending institutions are performing, as well as the consumer debt load of the countries in which you have a position in any currency pair. This can be a determining factor in your position, whether you’re long or short. When you’ve set out your trading strategy, be sure to base your positions carefully, whether you’re betting on long-term or short-term performance.

If you’ve been watching the positive movement in USD from the sidelines, and don’t feel that you’re prepared to make your own decisions without a little help, then open a practice account with any of the quality brokers that advertise on Forex Sleuth. Even if working with one of these accounts doesn’t provide you with enough confidence to start trading on your own, then you may want to consult a forex training course. To get a good understanding of forex trading you may to take advantage of a course like Trading Mastermind that provides you with strategy in trading currencies. Each Forex training program is different and offer different aspects to currency trading, whether it’s a program that provides an automated buy or sell signal or a strategy to read the markets. We suggest going with what you are always most comfortable with. So, if you’re ready to stop watching the dollar fluctuations and want to start trading the USD, then do a little homework and learn how the Forex market works and open a forex trading account as well as order learning materials.

Trading foreign currencies can be very profitable, particularly if you can anticipate strengths and weaknesses in economies around the world, and use that to your advantage as part of your Forex Trading System. There are many tell tale signs on whether an economy is strengthening or weakening, and if you spot these signs, then this is a your chance to make a profit. There is a downside if you happen to misread these signs or base your trading on emotion or in anticipation of an unlikely economic event. These are guidelines and NOT rules as there may be other factors that may cause a different affect on currencies, both domestic and foreign.

Although there are many aspects to an economy’s overall health, you should first look at the most obvious signals which come from the central banks. A central bank’s policies and actions are the signs that we’ll use to get a general sense of economic health. Whatever your view on central banks, they have major sway on economies and their rate changes and capital infusions in markets are signs for you to formulate your trading strategies. These rate changes and capital infusions are just a small part of what to pay attention to, and should influence your Forex Trading.

Rate Changes
When any central bank around the world lowers their interest rate, then the cost of borrowing money drops and should also affect the value of that currency in the same manner. Rate cuts are done to spur borrowing in order to prop-up a slowing economy. This shows that an economy is slowing and the interest rate drop is intended to help consumers and businesses borrow money in order to spend that money on goods and services. This will effect the entire economy of a country as businesses and consumers aren’t spending enough to maintain economic growth. When the cost of borrowing drops in one country the currency usually follows.

In the opposite direction, you get rate hikes, which is the raising of interest rates. Rate hikes are done to slow any economy to measured pace of growth. When economies are expanding for extended periods of time at a quick pace, then there is the risk of inflation, meaning higher cost to both businesses and consumers. When the costs for borrowing money are on the rise then the currency usually follows.

Capital Infusions
When a central bank sees that there is a problem with a country’s economy, then they may act by introducing more money into the markets. Essentially they are simply printing more money, making more money available deflates the value of that currency. Where does this money come from? Thin air, as there is nothing to back up today’s currencies other than to honor face value of that currency.

When a central bank pumps money into an economy, they are just making more money available. You can think of this in the same terms as today’s housing market. When there are too many houses and not enough buyers, all of the unsold houses are not worth what they once were, which brings down the entire housing market. Capital infusions or increasing the money supply should generally devalue the corresponding currency.

These are not hard and fast rules for basing your Currency Trading, but they are indicators of the direction a currency may move, which can make you a big payday. Don’t always expect to make money trading currencies, but pay attention to an economy’s overall health and you may be able to avoid losses. Now sign up or an account and pay attention to central banks.

*Before you make any decisions in trading foreign currencies or FOREX, you should consult your Currency Broker or a Certified Financial Planner, and consider an Online Forex Trading Course.

With Forex trading being an entirely new concept for some traders it is best to learn how the Foreign Exchange markets work before you invest your hard earned money in them. Fortunately you can take the Online Forex Trading Course so you’ll know what to expect and how to react in this 24 hour trading zone. You’ll get comprehensive lessons, resources and more to prepare you for assignments and quizzes to help you become a successful and profitable forex trader. This online course is 2 weeks long but allows you to interact for two months after you’ve completed the course, giving you expert advice once you’re actively trading. It is advised that you take this professional course before you begin trading currencies.

Currencies have trading pairs, meaning that you trade one currency against another. You will see the same currency pairs quoted in the same manner with all FOREX brokers and on financial news shows and publications. There is a method to the mayhem of currency trading, and if you’re used to trading stocks and options this may be a little different. Although we have previously provided an extensive list of currencies previously, here is a list of the currency pairs that you will be trading in your FOREX account.

Forex Symbol Currency Pairs
EUR/USD Euro / U.S. Dollar
USD/JPY U.S. Dollar / Japanese Yen
GBP/USD British Pound / U.S. Dollar
USD/CHF U.S. Dollar / Swiss Franc
USD/CAD U.S. Dollar / Canadian Dollar
AUD/USD Australian Dollar / U.S. Dollar
EUR/GBP Euro / British Pound
EUR/JPY Euro / Japanese Yen
EUR/CHF Euro / Swiss Franc
GBP/JPY U.S. British Pound / Japanese Yen

Most countries have their own currency, however as many countries form into large trading blocks a single currency is used across many countries, as with Euroland. However, some countries continue to use their own money, which is sometimes pegged to another stronger currency which makes it stable. If you are trading currencies with your FOREX broker, you will more than likely stick with the few top trading pairs, as they will be the most familiar to you. Even if you do not trade the majority of currencies, which could be very risky, you still may want to know the money that is used in a particular foreign country. You may make a bundle 4x trading and decide to take a vacation with the proceeds, so familiarizing yourself with a local currency is always a plus.

Here is a list of some countries and Euroland with the name of their currency and trading symbols.

1. Argentina Pesos ARS
2. Australia Dollars AUD
3. Bahamas Dollars BSD
4. Barbados Dollars BBD
5. Belize Dollars BZD
6. Bermuda Dollars BMD
7. Bolivia Bolivianos BOB
8. Brazil Reais BRL
9. Brunei Darussalam Dollars BND
10. Cambodia Riels KHR
11. Canada Dollars CAD
12. Cayman Islands Dollars KYD
13. Chile Pesos CLP
14. China Yuan Renminbi CNY
15. Colombia Pesos COP
16. Costa Rica Colón CRC
17. Cuba Pesos CUP
18. Cyprus Pounds CYP
19. Denmark Kroner DKK
20. Dominican Republic Pesos DOP
21. East Caribbean Dollars XCD
22. Egypt Pounds EGP
23. El Salvador Colón SVC
24. European Union Euro EUR
25. Falkland Islands Pounds FKP
26. Fiji Dollars FJD
27. Gibraltar Pounds GIP
28. Guernsey Pounds GGP
29. Guyana Dollars GYD
30. Hong Kong Dollars HKD
31. India Rupees INR
32. Iran Rials IRR
33. Isle of Man Pounds IMP
34. Israel New Shekels ILS
35. Jamaica Dollars JMD
36. Japan Yen JPY
37. Jersey Pounds JEP
38. Laos Kips LAK
39. Lebanon Pounds LBP
40. Liberia Dollars LRD
41. Malta Liri MTL
42. Mauritius Rupees MUR
43. Mexico Pesos MXN
44. Mongolia Tugriks MNT
45. Namibia Dollars NAD
46. Nepal Rupees NPR
47. Netherlands Antilles Guilders (Florins) ANG
48. New Zealand Dollars NZD
49. Nigeria Nairas NGN
50. North Korea Won KPW
51. Oman Rials OMR
52. Pakistan Rupees PKR
53. Peru Nuevos Soles PEN
54. Philippines Pesos PHP
55. Qatar Rials QAR
56. Russia Rubles RUB
57. Saint Helena Pounds SHP
58. Saudi Arabia Riyals SAR
59. Seychelles Rupees SCR
60. Singapore Dollars SGD
61. Solomon Islands Dollars SBD
62. South Africa Rand ZAR
63. South Korea Won KRW
64. Sri Lanka Rupees LKR
65. Suriname Dollars SRD
66. Sweden Kronor SEK
67. Syria Pounds SYP
68. Taiwan New Dollars TWD
69. Thailand Baht THB
70. Trinidad and Tobago Dollars TTD
71. Turkey New Lira TRY
72. Tuvalu Dollars TVD
73. United Kingdom Pounds GBP
74. United States of America Dollars USD
75. Uruguay Pesos UYU
76. Vietnam Dong VND
77. Yemen Rials YER
78. Zimbabwe Dollars ZWD