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Post by Peter on Oct 14, 2022 7:00:45 GMT 8
Sorry I really dont understand this stuff.
But why is our dollar so low compared to theirs?
A coffee here is $4 now.
To buy one there its the same but once the exchange rate come into play, that coffee is a lot more.
For the same thing
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Post by catlady on Oct 14, 2022 11:44:05 GMT 8
Sorry I really dont understand this stuff. But why is our dollar so low compared to theirs? A coffee here is $4 now. To buy one there its the same but once the exchange rate come into play, that coffee is a lot more. For the same thing people rushing to buy the US$ as a "safe haven" pushes other currencies down.
but don't ask me. Red hot inflation figures from US last night and the Markets are going ballistic - up not down.  |
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chris
Full Member
Posts: 115
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Post by chris on Oct 14, 2022 12:31:39 GMT 8
Interest rates are higher in us they then attack more money
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Post by flanman on Oct 14, 2022 15:26:16 GMT 8
Usually gold is the safe haven hedge when inflation hits however, this time around, the USD and investments seem more attractive. Gold does not pay dividends or interest so there has been a change of heart. Dividends and interest investments are the go at the moment in the US which has pushed the dollar. The GBP has been smashed over the past few months too.
Volatility is high as the moment. And as the markets say, we don't care which way it goes, as long as it goes.
Money to be made.
FM
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Post by DropBear on Oct 16, 2022 17:30:48 GMT 8
I don't understand the financial markets either. Havn't been involved in FX trading and I'm not likely to. Although speaking about FX, I just got stung when I booked a shore excursion for the cruise I'm about to go on, only to discover that it was US dollars and not NZ dollars.  But I have done share trading for the best part of 35 years and have recently come to the conclusion that most (if not all) financial analysts have no more insight into what the ASX is going to do tomorrow, next week, next month or next year than the man on the street. |
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Post by flanman on Oct 16, 2022 18:17:23 GMT 8
I don't understand the financial markets either. Havn't been involved in FX trading and I'm not likely to. Although speaking about FX, I just got stung when I booked a shore excursion for the cruise I'm about to go on, only to discover that it was US dollars and not NZ dollars. But I have done share trading for the best part of 35 years and have recently come to the conclusion that most (if not all) financial analysts have no more insight into what the ASX is going to do tomorrow, next week, next month or next year than the man on the street. I worked in FX and Financial Markets for around 30 years. I can tell you a fair few people in the industry did not know how it worked either. They basically traded volatility (hence my quote about "as long as it goes "). Systems alert you regarding volatility. I was also at the start point when option trading and derivative products first started in Australia. It was a good time at the coalface. Nowadays, banks (in Oz anyway) do not "gamble" on the movement of currency. They buy and sell for customers, funds management and hedge for company portfolios. Not too many cowboys in this day and age. I'll try and find an old clip of what FX Dealers were like. FM |
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