Well, we are back. And not in any conditions - actually we are back with our investment blogging in the middle of an apparent market recovery.
Futures for the DJIA, the Nasadaq and the Standard and Poor’s 500 have risen today 0.5 to 1%. This indicates that further increases on the US stocks are expected.
Is this optimism justified?
Recently I took a course in macroeconomics which proved extremely useful for my economics know-how. Among other things, I (and doitinvest.com) found out about how the exchange rate interacts with a national economy. This is very interesting stuff for all the forex traders, so just have alook and let me know how it looks for you
One critical driver of external demand of goods and services from a national economy is the exchange rate. The exchange rate sets the price of one currency in terms of another: for example, if the £/$ rate is 1.50 it tells us the US dollars needed to buy £1 – that is, $1.50. The exchange rate is fixed daily in foreign exchange rates across the world. Changes in the exchange rate have a big effect on cross-border spending, that is, on exports.
