I picked Japanese yet, because I believe Yen due its utility in the carry trade. A “carry trade” consists of borrowing a currency with a low interest rate, exchanging this money into another currency, and investing exchanged money in higher yielding and higher risk investments. These investments can include but are not limited to emerging markets, US-based stocks, and Japanese stocks. In turn, investors are essentially getting paid money when they choose to invest in a depreciating currency. In…
annatimone's Blog
The Future of Forex in 2013
I came across an interesting article on Yahoo Finance ” Forex Outlook for June“ and thought I would share my opinion with you. Generally, I think Forex is expected to be very volatile this year, because of drop of gold prices and slowdown of economy in China. Economic slowdown in China is mostly due to substantial decline in exports in response to recession in Europe and US, inflated property prices and generally inflation in China is on a rise. Also, China unsuccessfully tried to burst the bub…