Saturday, January 2, 2010

Currency market analysis is a key economic discipline

After all, the currency markets influence
many areas of our daily life. Their
impact extends beyond imports and
exports to factors that have an indirect
effect on us, e.g. the relationship between
interest rates and exchange
rates. These in turn influence economic
decisions that apparently have
nothing to do with foreign trade.
Changes in exchange rates are one
of the major risks to which companies
and investors are exposed. It is thus
impossible to imagine company managers
or asset managers ignoring the
risks inherent in a shift in exchange
rates.

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