Part I of this book offers a look at the "big picture" in foreign exchange (forex) trading, that is, what forces influence currency price movements. These forces are accepted by economists around the world as responsible for changes in the value of currencies. The person learning to trade forex or trying to improve his or her trading will benefit from a gain of knowledge of these fundamentals. In fact, as you will see, fundamental forces act as leading indicators of currency movement.
U.S. and global interest rates, economic growth, and market sentiment toward the dollar are the key ingredients that shape trading opportunities. Part I provides basic knowledge on how these factors impact forex prices and how they can be used in selecting trading opportunities.
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In any business or moneymaking venture, preparation and foreknowledge are the keys to success. Without this sort of insight, the attempt to make a profitable financial decision can only end in disaster and failure, regardless of your level of motivation and determination or the amount of money you plan to invest.