The situation on the forex in a time of financial crisis

Consider what happens to the forex market during the financial crisis: the tendency to commit transactions, despite the instability of global finance, and in some countries - economic crisis, not decreasing, even as the opposite - increasing. A cause of such concern for traders to trade is a fundamental fact of the rapidly unfolding events in the world, broadcast in the financial news, which caused consternation in exchange rates. Trader even attract established during the financial crisis, the terms of trade: the most negative news for one currency is beneficial to the other - and when a currency loses its course, the other just the opposite has become stronger. In this regard, the forex market are strengthened more stable position traders: much easier in this situation to determine the exact moments of the entrance to the market, and emerging trends are favorable for sustained stable and successful trade. What is today's only the news that the U.S. Dollar rose against the Japanese yen on Friday to bid in Asia after sharp fall in the previous session. This has been helped by buying from Japanese importers, traders arrived on fixing long positions in yen and the closing of short positions speculative market participants. Many signals, under normal market conditions could not have the force and ensure the success of the trader, but in a crisis when one currency compared to another is becoming more liquid, and the mood of the market especially made, comparing changes in the Dow Jones and Nikkei index provides the most successful projections on a pair of dollar - yen.

As for the major market players - financial institutions and banks - they suffered a fate. Low interest rates have made loans attractive to the general public. A huge amount of credit insolvent borrowers issued by banks, similar to a true "bubble" that will one day burst. Concerns about the ability of the vital sub-sector of mortgage lending, the Central Bank had to pour billions of dollars to support the work of credit facility. At a time of crisis central reduce interest rates to increase business activity. Only thus presenting an opportunity to borrow their currencies at low interest rates, increasing liquidity in the country and the world. But this is not a panacea, but only a temporary respite, especially since the influx of cheap money causes inflation. The banking system is experiencing a liquidity crisis. Simply put, banks have virtually no operating funds. This crisis is caused by low privlekaemostyu funds from abroad, careful investing and a huge amount of loans. This is due to the increase and interest rates on loans, which will grow and continue until the stabilization of the situation in the international arena.

Accustomed in recent years to a phenomenal increase in the indices of stock market participants do not see much of the anticipated New Year rally, while the market almost reached the performance, expressed by the most cautious analysts at the beginning of the year. On the stock market crash, stocks depreciate, and thus fall in national stock indices will inevitably lead to the collapse of national currencies - and the trader is only good. The only inconvenience to the trader for the forex market is the rapid activity of the events, which during the financial crisis is forcing the trader to show a higher speed - dodgy trade in time to make the right decision to account for a few seconds. And important criteria surrounding the successful result of the transaction is a high speed internet connections, as well as service quality and customer Dealing center manager.