Forex 58

The Forex Market as We Know It Today Turns 50.


The Foreign Exchange market, as we know it today, is 50 years old. In 1971, due to fears of recession, high unemployment and most significantly the worry over rising inflation and higher prices, the then US President, Richard Nixon, unilaterally removed the USD from the Gold Standard, preventing overseas governments and investors from swapping US dollars for gold at fixed rates.


This eventually led to the floating exchange rate system we enjoy today. At the time the US inflation rate was 5.84% and unemployment was running at 6.1%.


1979.


Energy Crisis / 3 Mile Island: Crude oil prices rose by over 9%, following the Iranian Revolution & disruption of supplies, which undermined sentiment following an accident at Three Mile Island nuclear reactor in the USA.


European Monetary System: Most nations of the EEC linked their currencies to prevent large fluctuations relative to one another.


The Sub-Prime Mortgage inspired Great Financial Recession.


2008-9.


The Lehman Moment, huge job losses, home repossessions and the Euro debt crisis.


The birth of Bitcoin.


2022.


Swiss Franc Black Swan - Switzerland removed the floor of 1.2000 EURCHF, the pair dropped thousands of pips within a minute. It was the largest single-day move in any currency since the Nixon Shock in 1971.


Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.


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China mainland and HK shares rising, yuan too Australia weekly consumer confidence survey jumps to its highest since September 2022 Goldman Sachs forecasts USD/JPY to 126 (12 month horizon), from 130 previously Trade ideas thread - European session 9 January 2023 Eurozone November unemployment rate 6.5% vs 6.5% expected Morgan Stanley have boosted their China 2023 GDP forecast to over 5% China bought another 30 tonnes of gold in December 2022, following 32 tonnes in November.


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VIDEO: USDJPY finds sellers near the 50% retracement. What next? Video: Four ways to trade 2023 in the forex market The playbook for the dollar in 2023 A happy new year (2023) with this Bitcoin analysis from ForexLive.com.


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High risk warning: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading and seek advice from an independent financial or tax advisor if you have any questions.


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