Forex market and its sentiments

Forex market and its sentiments

Introduction

The following data relate to the Forex market. Much of the information is strained from the 2007 Triennial Central Bank review of Foreign Exchange and derivative Market action conducted by the BIS (Bank for International Settlements) in April 2007. 54 central banks and monetary authorities participated in the survey, collecting information’s from just about 1280 market participant.

Expectations from the Market sentiments:

Most people expect some thing good from this forex market. But it moves opposite to the expectations of the trader. Many reviews show there are very few traders in the market who have earned from this market. Average each day turnover of this forex market keeps on rising. A boost of 71 percent at existing exchange rates and 65 percent at stable exchange rates against the backdrop of low levels of economic market instability and risk loathing. Market participant point to a major expansion in the action of investors group counting hedge funds, which partially facilitated by considerable increase in the exercise of major brokerage, and trade investors. A noticeable boost in the levels of scientific trading –particularly algorithmic trading is also expected to have boosted revenue in the spot market. Transactions stuck between exposure dealers and non-reporting economic institutions, such as hedge funds, pension funds, mutual funds and insurance companies, from April 2004 and April 2007 were doubled and contributed additional than half of the boost in collective turnover." There are many other reasons why traders see this market falling and coming up. The economical and political factors are the main which effect the market a lot. - BIS

Source: BIS Triennial Survey 2007

Trading Hours

• Sunday 5pm EST through Friday 4pm EST
• 24 hour market
• Trading begins in New Zealand, followed by Australia, Asia, the Middle East, Europe, and America

Size

• $3.2 trillion average daily turnover, equivalent to
• One of the largest financial markets in the world:
  
• More than 35 times the average daily turnover of the NYSE
• More than 10 times the average daily turnover of global equity markets¹
• An annual turnover more than 10 times world GDP
• Nearly $500 a day for every man, woman, and child on earth