Forex Market – Forex Trading & Emerging Markets

U.S. dominance has long been evident in forex trading. US Dollars. Euros. Pounds. Japanese Yons. These major currency pairs can be called “majors”. Today, forex traders look for ways to trade less traded currencies like the Malaysian Ringgitt (Singaporean Dollar), and Brazilian Real. These currencies are both viable and much more profitable than the big currencies, see my review here.

Different currencies have different risk profiles. Singapore is recognized for its strong fiscal policies and high foreign reserves. Singapore’s recent success has been unprecedented with its expanding economy and highly-educated workforce. Singapore’s currency continues to appreciate in value. Singapore’s economic success is dependent upon international trade. The global downturns that can affect Singapore’s economy could prove very costly. Following 2008’s global financial crises, Singapore’s economic performance declined more than 1%. Singapore’s currency lost value as a result.

Forex traders find the Malaysian Ringgit a highly attractive currency. Malaysia is experiencing tremendous growth, similar to Singapore in recent decades. Malaysia is an exporter country but also has a substantial domestic market, which can absorb some global trends. Malaysia, like many other neighboring countries is stable financially and politically. Malaysia’s oil wealth is the main reason. These circumstances make Malaysia’s Ringgit worth taking a closer look.

Brazilian Real is an increasingly popular commodity. The Real is almost twice as valuable than the U.S.$ since 2003. Brazil is Latin America’s most important economic country. Brazilians are less dependent on foreign trade and more inwardly focused, making them more vulnerable to economic downturns. Brazil’s attractiveness is increasing due to uncertainty on the international markets. Brazil’s economy has been slowing in recent years. Some analysts see the Real being undervalued.

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