That Doesn’t Work Anymore

Chapter 13 Currencies—Chicken and Egg

Currencies are the largest trading market in the world, markets are open 24 hours a day, and there is estimated to be more than $5 trillion of trading volume per day.46 Currency markets are often where you see the quickest reaction to macroeconomic and political news. Exchange rates influence inflation, the ability for companies to sell products internationally and drive the cost of production materials. Analyzing all the potential interactions that currency valuations have in the economy can feel a bit like having to peel off all the layers of an onion with tweezers, especially as both can bring tears to your eyes.

Even if you are an experienced investor the foreign exchange markets (Forex) can be tricky ...