www.informedtrades.com A lesson on how the capital flows between different countries affect the value of their currencies for active traders and investors in the forex market.

5 Responses to “104. What Moves the Forex Market? – Capital Flows”

1. InformedTrades says:

   January 30, 2010 at 5:04 am

   This is true but is a little more of a sticky situation than your “high percentage bond” question. This one could change depending on many different factors and does not necessarily have a clear cut answer.
   -Brendan
2. InformedTrades says:

   January 30, 2010 at 6:00 am

   That is correct. The foreign country would have a financial instrument that is in high demand, thus creating demand for their currency since you would need their currency to invest in their instrument.
   -Brendan
3. tadthadd says:

   January 30, 2010 at 6:25 am

   so a high percent bond in a different country would creat a demand for their currancy right, because people would need their currancy to be converted to the countries currancy that has the good looking bonds…right?
4. tadthadd says:

   January 30, 2010 at 6:45 am

   after a merger from the german bank would i then expect to see a reverse trend, because of the germans wanting to change the usd profit from their washington mutural bank back into euros. so basically they want usd at first, but then eventually want to turn their usd profit back into euros??
5. ledwalrus says:

   January 30, 2010 at 6:58 am

   Hey, your videos are great! Thanks for making them.

   On this video, though, I think you forgot to include FDI as a component of capital flows.