Forex Trading - The Wave Of The Future
(PRWEB) November 24, 2011
The 17 countries that make up the EU together account for over $16 trillion of gross domestic product (GDP). This is almost $2 trillion more than the GDP of the United States and nearly 3 times China’s $6 trillion. Economic growth has essentially come to a standstill in Europe. ITFX , Forex Trading firm, reports of statistics indicating growth for the quarter ending in September and the one prior to that was an anemic 0.2%. Online Forex traders have reacted with extreme wariness to the euro.
Estimates of third-quarter GDP growth have yet to be released for all 17 countries of the euro zone. Notably absent and with the potential to further drag down the 0.2% growth figure are estimates for Greece, Ireland, Italy, Luxembourg, Malta and Slovenia. Estonia, with a 0.8% result for the third quarter comes in at the top of the EU countries for which growth figures are available.
It appears that if Europe is not already in a recession, it seems to be headed in that direction. Europeans will suffer a reduction to their standard of living, the job market will decline and consumers, uncertain about the future, will stop purchasing items that are essential to stimulating economic growth.
The impact of this reality will be felt acutely in the US, since 20% of its annual exports go to Europe. Asian countries will experience a similar reduction in exports. This news had a profound effect on US stock markets Wednesday, when a report warning of the spreading European debt crisis’ effect on large US banks caused an over 150 point drop in the Dow in the last hour of trading.
Bank of America Corp., JP Morgan Chase, Goldman Sachs and Morgan Stanley dropped sharply, according to InvestTechFX experts. The top five US banks have over $100 billion in various assets tied to French banks. In turn, French banks have a high degree of exposure to the bonds of Greece and Italy.
It remains to be seen what new Italian prime minister designate Mario Monti and the new government in Greece can do to stop the erosion of confidence that euro investors have been treated to on a daily basis. News that France’s 10 year bond rate rose from 2.54% near the beginning of October to close to 4% on Wednesday, threatening that country with the loss of its AAA credit rating, comes at a time when investors are holding out hope for anything that even closely resembles a move in a positive direction.
FX trading has become more complex lately as Forex currency exchanges attempt to make sense of the future of the euro zone economies and the euro currency. Online Forex traders in particular, need to have access to the most current information coming from the euro zone, along with the ability to trade efficiently and economically. These traders find the services of a Forex ECN such as InvestTechFX, invaluable in providing accurate news, precise technical analysis and instantaneous currency pair order execution.
Being able to react as a trader to rapidly developing news and having access to the most competitive currency rates with tight, fixed spreads are just a couple of the advantages available from Forex ECN InvestTechFX. Their Forex currency exchange experts represent a combined 20 years of experience in unraveling the complex and unpredictable variables that influence currency pair price fluctuations.
With locations covering all four major Forex trading zones, InvestTechFX offers the resources to which traders around the world are justifiably entitled. They can be contacted 24 hours a day, all five days of the Forex trading week, by telephone, fax, e-mail and online chat live support.
For complete contact information, visit their website at http://www.investtechfx.com
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