How Do You Trade On The Forex Market Using The U.S?
The forex market is one of the most heavily traded markets in the world. Any nation state can issue and trade currency; however, there are only a few major currencies which make up the bulk of forex trading. Forex investors use indicators like the U.S. dollar index and moving averages to help provide information on the general direction of U.S. currency. They can also use this information to identify buy and sell signals. Understand that the U.S. dollar index is a measure of the relative strength of the U.S. dollar in comparison to other major currencies. It is calculated using a trade-weighted index methodology, which is similar to the way most market indexes are calculated. Understand how the index is calculated. The index factors in the exchange rates for six major world currencies: euro, yen, cad, pounds, krona, and Swiss francs. Understand how to interpret the index.The index was started at a base of 100 in 1973. An index value of 130 suggests that the U.S. dollar has increased by
