How Shares affects the Forex Market

[mumuy]

Most traders follow trends and economic projections in order to somehow predict changes in the pattern of exchange rates. However, there is another way to predict or to calculate the patterns by examining the state of the stock market, since, this a based on thousands of reports coming from companies all over the world.

Furthermore, price fluctuation depends of the amount of supply and demand in the world market. However, this fundamental principle is influenced by various factors that caused permanent currency fluctuations every day. An example of which is when an exchange rate is low, it follows that exports are cheaper. As a result, exporters get more revenue which affect he state of the stock market.

 

[bablogfx]

In my opinion, forex is self-regulating system, with auto-balance function because everything in economics is interconnected in a way of circle.Fluctuations just take up time to return into balance. It follows that the more your deposit the more time you can wait while surge will be return to the balance. That's why it alwaiys profitable for big companies with more than one mln. deposit be almost constantly in profit. Regular traders just make market liquid, which is inevitable factor of it's existance.

 

[Fxpipper]

To a certain extent, yes but not possible to use as a reliable indicator to indicate the currency's strength. The stock markets go bullish depending on many factors, so working out the why and the how, while makes sense is not that easy to work out..