Latest developments in the intrinsic value of the currencies are new and drastically varying from its historic performances. The 2008 crisis has resulted in a flight to risk that overvalued American dollar against almost all of its trade partners. This process has started to reverse as trade flows recuperates and Gross domestic product growth trend becomes positive around the world. However a jobless recovery in America, with global growth created largely by emerging markets had generated huge variations in the values of the currency. Countries that have minerals and natural resources like oil have benefited from the rise of China, the rise of its city-dwelling working class, its appetite for energy, commodities, food and its determination to build infrastructure.
Comparing the period of March – June 2009 with June- July 2010, the Kiwi and the Australian Dollar have gone up respectively 32% and 30% in comparison to the European currency. Agriculture and Mineral translated to 37.6% and 4.6% of export from Australia. China is Australia’s biggest export market at 42.5 billion in 2009.
Other currencies experimenting large gains are the Canadian Dollar, the Colombian Peso, the Brazilian Real and the South African Rand. The Canadians are has the second largest oil reserves of crude and gas globally - 179 billion of barrels, currently the biggest oil provider for the United States (satisfying 22% of the US demand) and the safer, investment-friendlier producer in the list of the other top providers (Mexico, Saudi Arabia and Venezuela). Not only do they provide oil , but Canada is also a leading provider of farming fertilizers to the developing countries. The Canadian dollar has appreciated 21% versus the Euro in the mentioned period.
Oil and natural reserves have also helped Brazil. Recently they found an oil reserve that is considered the largest after the Kazakhstan find in 2000. It is projected at 2-5 billion barrels. Brazil is also a leader in green energy – especially bio-fuel. Agriculture has also gained momentum with production in soya using creative genetic engineering showing good results. They are giving the developed nations a real run for their money and even winning some of the battles. Naturally, the overall value of the Agriculture sector has more than double over the last 10 years. The Brazil Reais has appreciated 29% versus the Euro in the mentioned period.
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