Learn a lot. But very complicated due to political, geopolitical, and central bank meddling. Unless you get insider knowledge like the big banks and boutiques get it's very, very hard to trade and profit.
But does reflect a lot of what's going on in the economy. Interest rates effect it considerably, almost exclusively. Know interest rates know the economy and DXY.
However, can get jacked really easy. Like the early 2000's when Greenspan was aggressively raising interest rates to slow things down. He lost control of rates all together. It was a conundrum he said in his to congress spanspeak. Says he thought reflecting years later it was eastern Europe opening up (cheap labor) but that was 10 years before? The bankers said they couldn't figure out why raising rates would still get a juicing economy, and weak dollar?
It was the Chinese buying so many of our bonds to keep their currency low and to put all those dollars some place. Joining the WTO and getting more special favored status for the big boys to invest in and make more easy money the bond market quit functioning like it had and hasn't been the same since that and all the juicing. So here, if you were betting stronger dollar because of rising rates you would have got jacked. SUPPOSEDLY everyone was clueless? Oh well.
Learn a lot. But very complicated due to political, geopolitical, and central bank meddling. Unless you get insider knowledge like the big banks and boutiques get it's very, very hard to trade and profit.
But does reflect a lot of what's going on in the economy. Interest rates effect it considerably, almost exclusively. Know interest rates know the economy and DXY.
However, can get jacked really easy. Like the early 2000's when Greenspan was aggressively raising interest rates to slow things down. He lost control of rates all together. It was a conundrum he said in his to congress spanspeak. Says he thought reflecting years later it was eastern Europe opening up (cheap labor) but that was 10 years before? The bankers said they couldn't figure out why raising rates would still get a juicing economy, and weak dollar?
It was the Chinese buying so many of our bonds to keep their currency low and to put all those dollars some place. Joining the WTO and getting more special favored status for the big boys to invest in and make more easy money the bond market quit functioning like it had and hasn't been the same since that and all the juicing. So here, if you were betting stronger dollar because of rising rates you would have got jacked. SUPPOSEDLY everyone was clueless? Oh well.