Predicting the Market

stock exchange

There are numerous options that can help you minimise the impact of adverse exchange rate movements on your funds transfer.

Nobody can accurately predict future exchange rates and consumers should be very wary of dealers who claim they can. Most clients will be better served making sure they are getting competitive rates and understanding the options they have to minimise the impact of adverse exchange rate movements on their funds transfer.  Such as hedging strategies and limit orders, please discuss this with me for more details.

Having said that it is nice to follow the markets and understand what is causing trends and volatility in exchange rates. The factors that generally have significant impact on exchange rates are:

  • The release of economic data such as GDP, inflation and unemployment
  • Changes to a country’s fiscal policy
  • Large capital flows as fund managers move assets between global markets
  • Changes to interest rate differentials between counties
  • The trends in other asset classes such as commodities, equities and bonds
  • Geo political events that increase or decrease a country’s risk in the eyes of investors

It is also useful to monitor currency charts to familiarise yourself with the history of an exchange rate and understand it’s historical volatility.

In depth analysis of charts and price history is called technical analysis and is a popular approach to timing exchange rate transactions.

 

About NZForex
NZForex is part of the OzForex Group, which is a strategic investment of Macquarie Bank, Accel Partners and the Carlyle Group. The OzForex Group also includes UKForex, CanadianForex, OzForex, ClearFX and Tranzfers.
Since its launch in 1998, the Group has grown to be one of the world’s largest online foreign exchange companies by offering super competitive exchange rates, great technology and superb service. Offering seamless 24-hour access to Corporate and Private Client Dealers, the OzForex Group completes over 300,000 funds transfers per year on behalf of clients. A combination of knowledge and expertise has made the OzForex Group a significant player in the global foreign exchange marketplace, and one of the world’s leading online foreign exchange services, with over 400,000 visitors per month and more than 100,000 transacting customers globally.

For further information or to organise a transfer, ask me about how NZForex can help.

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