Category: Fundamental Analysis 101

With interest rates dictating the rate of return for holding assets denominated in the local currency, forex traders also pay special attention to interest rate differences when it comes to keeping their positions open for a long time. This is because the interest rate difference is carried on when a forex position is kept open … Continue reading Taking Advantage of Carry Trade

Another useful tool in fundamental analysis is using the U.S. dollar index or USDX for short. This keeps track of the dollar’s performance against a basket of currencies. Included in this basket of currencies are the euro, yen, pound, Canadian dollar, Swedish krona, and Swiss franc. Aside from providing a general direction of dollar behavior, … Continue reading Using the Dollar Index