The U.S. dollar is the reserve currency of the world and as such, its fundamentals and technicals are paramount in any trade involving it. There are times when some news out of the Fed creates a market spike that takes you out of a trade.
In the last 20 years, the world that was divided politically between the ideologies of democracy and communism has become one, with a few small exceptions. The global financial players have responded to that transformation by sharing one stage and having access to equities, bonds and commodities the world over almost equally and instantaneously.
This brings us to a central place in today’s financial world: currency markets. The spot currency markets are not only central within the global financial system, but they also have become an asset class.
They offer great opportunities to traders and asset allocators alike with uninterrupted trading from 5 p.m. EST on Sunday in New York until the same time on the following Friday. The inter-bank currency markets, long a domain of large banks, hedge funds and professional speculators, in 2001 welcomed small investors.
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