Equilibrium in the Foreign Exchange Market
With the development of the Bretton Woods monetary system and the
transition to Jamaica established a model of a free currency conversion
that gave rise to equilibrium in the foreign exchange market. Its main
feature was the shift to a regime of floating exchange rates. Now, not
so much a state as the market itself determines the value of a currency.
If things go well for the country, the economy is booming, the demand
for domestic currency increases, including increased volume of
transactions in this currency. If on the contrary, the state is
experiencing economic difficulties, its national currency losing value.
This is the balance in the foreign exchange market. It is also
remarkable that such a situation is characteristic only for those
currencies whose rates are completely free floating.With the advent of the Internet and the establishment of electronic trading in the forex market balance was only worsen because rates are much quicker to react to events and changes, and accordingly, the rate of arrival rate to the market value of the currency should only grow. But there was a bias in the opposite direction, exposing the shortcomings of the Jamaican currency system. Despite the official selection of a number of currencies as world reserve units, in particular: the U.S. dollar, pound sterling, Swiss franc, Japanese yen and the euro - the absolute leader in terms of transactions in the foreign exchange rynkestal the U.S. dollar. Its share of global money turnover exceeds 50%, as of 2011.
Such a bias in favor of the U.S. dollar was due to the powerful influence of financial and
investment funds of America on the world
economy. As a result, the dollar became the currency of the wrap, while
not having the proper material confirm the level of its value. Without
going into detail, it should be noted that the global economy has driven
itself into a trap: the dollar traded higher than its market value, but
because of its huge turnover and large reserves of world powers in U.S.
dollars, the world can not abandon it. Moreover, a strong alternative
to today did not exist, partly overlapping risks through the purchase of
precious metals and especially gold.After the test, the global financial crisis the state of the currency market remains unstable. Volatility increased too, with the volume of the foreign exchange market continues to grow.
Statistics in the foreign exchange market to increase it, so in 2011 the average daily turnover on the FOREX market, approximately $ 5 trillion, and by 2020 is projected to increase to $ 10 trillion.

Unstable state of the currency market due to the crisis of high-risk assets and the transfer of investor funds to more secure financial instruments. Hence, the downward trend in world financial index, falling share prices and rising prices of natural products.
This provision in the foreign exchange market led to record growth in the value of gold and its extreme volatility. Gold has always been regarded as a real value, demand for which can only grow. However, the huge flow of funds in the precious metal has caused a glut in demand, and as a result, very large fluctuations in the price.
The foreign exchange market also aggravated the lack of alternatives to the U.S. dollar. Being the world's reserve currency, its share in total world monetary transactions of over 50%. Investors, withdrawal of funds from high-risk assets, such as selling shares "convert" them into U.S. dollars. In this case the U.S. dollar and its value is already long gone from the real value that could be supported, including the economic growth of America. Pumping up the dollar value of the fictitious and increasing its emissions, the Federal Reserve (Fed) brings the world to a new round of financial problems and complicate the situation in the foreign exchange market. The absence of an alternative U.S. dollar only exacerbates the situation in global financial and currency markets.

Despite the increase in statistics, trends, currency market have a negative connotation. On the one hand, increases the size of the market and its volatility, on the other - growing crisis of high-risk assets and investments in the bend conservative instruments. All this leads to destabilization, complicating prediction and the absence of clear prospects for the currency market. After speaking about the prospects of the currency market, we primarily select their leaders and outsiders. But for now leader of the financial and currency markets - the U.S. dollar - a colossus with feet of clay. And in the absence of adequate alternative future trends and prospects of the currency market remained under a veil of mist.

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