Forex Exchange Blog

Eric F asked:


Hi,

Im wondering whether the cross pair currency rates are determined by speculative traders or arbitrage trading computers. For example you have two liquid pairs:

EUR/USD
USD/CAD

and a cross rate

EUR/CAD

I figure, since most of the speculative trading is done on EUR/USD and USD/CAD, the EUR/CAD exchange rate is made by arbitrage traders adjusting the correct cross rate so there is no cross currency arbitrage. That means there are a lot less speculative trades on the EUR/CAD pair than on the EUR/USD for example, percentage wise that is, right? Given that, trading on the cross rate is alot harder, since the market psychology is made up of less traders and more arb, right?

SHEMANSKI

CuriousEU asked:


I am going to visit different countries in Europe and I don’t know which will give you the best exchange rate??

Should I go to Forex in my own country to exchange currency ahead of time? Or should I use my Debit card to withdraw money at ATM machines when I arrive to that particular country?

So far I just know if you use ATM at airport is not a good idea, and bringing traveller’s cheque does not give you good rates either.

LUTE

westphalia1 asked:


Do foreign gold coins (say, Canadian Maple Leafs and other countries gold coins) have 3 values to them? 1) collectors appreciation value and 2) Daily spot/market price of the gold itself and 3) the foreign exchange value. And also, do real gold coins (foreign in this case) fluctuate according to exchange rates (FOREX RATES) . It would seem to me they should have some exchange rate since they could be used as currency if you wanted to. I am not sure. Thanks

SCHOONMAKER

Michbittelieben asked:


what does the fed buget signify? does it have a big impact on the exchange rate?

KRUK