Forex Market – Forex Trading and Emerging Markets
Forex FXCM Markets trading has been dominated long ago by the U.S. Dollars, Euros, British Pounds, Japanese Yens, and other “major global currencies”. Actually, the major currency pairs are called “majors”. Forex traders are now looking for opportunities to trade in lesser-traded currencies like the Malaysian Ringgitt, Singaporean Dollar and Brazilian Real. These currencies are viable and more profitable than the major currencies.
Different currencies are associated with different risk levels. Singapore’s government is well-known for its excellent fiscal policies and large foreign reserves. Singapore has had unprecedented success with its growing economy and educated workforce in recent years. The currency of Singapore is increasing in value. It is worth noting that Singapore’s economy is dependent on international trade. This means that global downturns can be very damaging to Singapore. Singapore’s economy declined by over 1% after 2008’s global financial crisis. This led to a drop in the value of Singapore dollars.
In recent years, Forex traders have also found the Malaysian Ringgit to be a very attractive currency. Malaysia, just like Singapore has experienced tremendous growth over recent decades. Malaysia is an export country, but has a significant domestic market that is able absorb some of what happens in global markets. Malaysia, unlike many of its neighboring countries, is politically and financially stable. This is due to the country’s oil wealth. These conditions make the Malaysian Ringgit worth a glance.
The Brazilian Real is a popular commodity in recent years. The Real has almost doubled in value since 2003 against the U.S. dollars. Brazil is now the economic powerhouse for Latin America. Because the Brazilian economy is inwardly oriented and not dependent upon exports, investors consider it more resilient to global downturns. Brazil is becoming more attractive due to so much uncertainty on the global markets. It is worth noting that Brazil’s economy has slow down in recent years. Some analysts now see the Real as being overvalued.