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The FX Bootcamp Guide to Strategic and Tactical Forex Trading by Wayne McDonell

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SUMMARY

Analysis of fundamental economic data to derive central bank policy will certainly help you develop a bullish or bearish bias toward any currency you choose to study. Your forex trading should go with the money flow and interest rates create long-term trends.
FIGURE 5.17 The FED Cycle
Source: The Federal ®eserve (www.federalreserve.gov)
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However, interest rates are not the only thing that can impact global money flow. Commodities that are consumed by economies around the world also act like money magnets. The two I love to trade via the forex market are oil and gold. Currency traders simply buy and sell money. In my humble opinion oil is money. Gold is money. Chapter 6 will explore how you can use moves in the commodities market to find opportunities to trade the currency market.

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