Thursday, September 16, 2010

Strongest Currency

There is a difference between the strongest currency and the highest valued currency.
Kuwaiti Dinar is the highest valued currency in the world and a single Kuwaiti Dinar is equal to more than $3.00. However, this does not mean that Kuwaiti Dinar is the strongest currency, because if any other country wishes to change their current currency and issue a new one, they may set their own currency value which is always higher then their previous currency value. So Russia could issue a new currency and make the 1000:1, by which 1 new rouble would be equal to 1000 old roubles and people would be allowed to turn their old 1000 roubles for 1 new rouble and therefore it would make the new Rouble the highest valued currency in the world. However this does not mean that it is the strongest currency in the world, because as time passes by currency usually devaluate because of inflation and country's economy. Some currencies devaluate in a higher rate compare to other currency while some others remain stronger and devaluate in value in a lesser rate compare to other currencies... and hence the term, the strongest currency... a currency which devaluates in value in a lesser rate compare to any other currency.
There are two different valuaters of currency strength:
1) Relative currency strength
2) Absolute currency strength

Friday, September 10, 2010

Relative Currency Strength

Relative currency strength (RCS) is a technical indicator used in technical analysis of Forex market. It is intended to chart the current and historical strength or weakness of foreign currency based on the closing price in recent trading period.It based on the Relative Strength index and mathematical decorrelation 28 cross currency pairs.It shows relative strength momentum selected major currency. (EUR, GBP, AUD, NZD, USD, CAD, CHF, JPY)

RCS is that, as a rule, used by 14 * duration period, measured in scale from 0 100 like RSI, high and low level indicated by 70 and 30, respectively. Shorter or longer terms are used alternately short or long outlooks. More extreme high and low level of -80 and 20, or 90 and 10 occur less frequently, but show a strong impetus to the Republic of Armenia currency.

Combination of relative currency strength and absolute strength of foreign currency indicators allow you to input and output signals strong currency trading.

The main idea

The basic idea of the index is a strong buy and sell currency to currency.
If the X / Y in the currency pair uptrend, it shows you if it is because of X or Y force weakness.
This signals you can select the most deserving pair trade.

Currency strength

Currency strength expresses value of each currency[which?] in relation to other currencies.
դրա հետ կապված այլ արժույթների ժամանակի ընթացքում.">The best way to judge the currency's worth the watch the other currencies over time. Supply and demand, inflation and other economic factors will lead to changes in relative currency costs, and that this change in value that can be used to estimate costs. Strongest Currency

There are 8 major currencies (EUR, GBP, AUD, NZD, USD, CHF, CAD, JPY), which create a combination of 28 currency pairs. The main currencies to create up to 90% around the Forex Market trading volume.

Currency strength is based on indicators

Currency collapse strength calculated from the major currency pairs. Strongest Currency

The basic idea of indicators is a strong buy and sell currency to currency.
If the X / Y in the currency pair in uptrend, it shows you if it is because of X or Y force weakness.
These parameters you can:

* Select the most deserving pair trade.
* Tool ratio / spread merchants to see reactions about the changes in each currency to be the coordinator of tools (eg `CAD / OIL or AUD / GOLD)
* Helps you looking for a currency strength trend
* Observe the entire Forex market, one chart

Most well-known indicators used in Forex currency on the basis of relative currency strength to strength and absolute currency strength.Their called Forex is a combination of flow rate, because it shows you currency flows Forex.

Absolute Currency Strength

Absolute monetary strength (ACS) is a technical indicator used in technical analysis Forex market.It table is provided for current and historical gain or loss on foreign currency based on the closing price in recent trading period to figure out the strongest currency.It based on mathematical decorrelation 28 cross currency pairs.It shows the absolute force fit the selected major currency. (EUR, GBP, AUD, NZD, USD, CAD, CHF, JPY)

ACS is that, as a rule, is used 15 * duration period, calculated as a percentage gain or loss.This indicator is not measured by such a large force Relative currency. Shorter or longer terms are used alternately short or long outlooks.Extreme high and low values occur less frequently, but show a strong impetus to the Republic of Armenia currency.

ACS is mainly used as support for currency strength indicator Relative indicator.But it can be used in the self-currency trading. You can use the absolute power for strong currency trading as an example well.Combination the RCS and ACS indicators allow you to input and output signals currency trading.

The main idea

The basic idea of the index is a strong buy and sell currency to currency.
If the X / Y in the currency pair uptrend, it shows you if it is because of X or Y force weakness.
This signals you can select the most deserving pair trade.

Paper Money

In premodern China of the need for credit in circulation and a medium that is less a burden than exchanging thousands of copper coins led to investment in paper money, known today as banknotes. This economic phenomenon was a slow and gradual process that took place until late tang dynasty (618-907) in the Song Dynasty (960-1279). It started as a way to merchants to exchange heavy coinage (strong currency) for receipts of deposit issued as promissory notes from stores wholesalers, notes that were valid for temporary use in a regional area. The 10 th century, the Song Dynasty government began circulating these notes in the merchants in their monopolized salt industry. Song government granted several shops sole right to issue banknotes, and the early 12th century the government finally took over the shops to produce state issued currency. But the notes made in the region were still valid and temporary, it was not until the mid-13th century, the standard and uniform government issue of paper money was made into an acceptable national currency. The already widespread methods of woodblock printing and then Bi Sheng's movable type printing by the 11 th century was the stimulus for the mass production of paper money in premodern China.

At the same time, the medieval Islamic world, active monetary economy was created during the 7th-12th centuries on the basis of expanding levels of circulation of a stable strong currency (the dinar). Innovations introduced by Muslim economists, merchants and merchants include the earliest uses of credit, checks, promissory notes, savings accounts, transactional accounts, loaning, trusts, exchange rates, transfer credit and debt, and banking institutions for loans and deposits.

Europe paper money was first introduced in Sweden 1661; Sweden was rich in copper, thus, as copper low value, extraordinarily big coins (often we have a few kilograms) had to be made.

Advantages of paper strong currency were numerous: it reduced transport of gold and silver, and thus reduced risks, it made loaning gold or silver at interest easier, since the specie (gold or silver) never left the possession of the lender up to a else redeemed the notes, and it gives the division of currency into credit and specie backed forms. It enables the sale of stock corporations, and the redemption of the shares in the paper.

However, the advantages held within them disadvantages. First, note that no internal value, there was nothing to stop authorities from printing more fact than they had specie to back it with. Second, because it has increased money supply, it increased inflationary pressures, a fact observed in David Hume in the 18th century. The result is that paper money would often lead to inflationary bubble, which could collapse if people began demanding hard money, causing the demand for paper notes to fall to zero. Printing of paper money was also associated with wars, and financing of wars, and, therefore, is considered part of maintaining a permanent army.

For this reason, paper currency was held in suspicion and hostility in Europe and America. It is also addictive, since the speculative profits of trade and capital creation were quite large. Major nations established mints to print money and mint coins, and branches of their treasury collect taxes and hold gold and silver stock.

Coinage

These factors led to the shift in the value of being a metal shop, he first silver, then both silver and gold. Metals were mined, weighed, and stamped into coins. This was to assure the individual taking the coin, that he was getting a certain known weight of precious metals. Coins can be imitated, but also created a new unit of account, which helped lead to banking. Archimedes' principle provided the next link and coins can now easily tested for the weight of fine metal, and thus the value of coin can be determined, even if it has been shaved, debased or otherwise tampered with (see strongest currency).

Very large economies using coinage, copper, silver and gold formed three tiers and coins. Gold were used for large purchases, payment and support for military activities of the state. Silver coins were used in midsized transactions, and as a unit account for taxes, fees, contracts and fealty, while copper coins represented the coinage overall transaction. This system which is used in ancient India, as the time Mahajanapadas. Europe, this system works through the medieval period because there was almost no new gold, silver or copper introduced through mining or conquest. Thus, the total ratios of three coinages remained approximately equivalent.

Early Currency

Origin of the currency is the creation of a circulating medium of exchange based on a points account, which is fast becoming a shop value. Foreign currency has become the two major innovations, both of which occurred in 2000 BC. Originally money was a form of receipting grain stored in temple granaries in ancient Mesopotamia Sumer, the ancient Egypt.

This first phase of the strongest currency, where metals were used to represent stored value, and symbols representing the materials formed the basis of trade in the fertile Crescent for over 1500 years. But the collapse of the Near Eastern trading system pointed to a chasm. In a period where there was no place that is safe store value, the value of a circulating medium is only as sound as the forces that defended that store. Trade could only reach as long as the credibility of the military. According to the late Bronze Age, however, a number of international treaties had established safe passage for merchants around the Eastern Mediterranean, spreading from Minoan Crete and Mycenae in the northwest of Elam and Bahrain in the south-east. Although not aware of what operates as a currency, promote the exchanges, the idea that ox-hide shaped ingots of copper, produced in Cyprus may act as a strongest currency. The idea that the rise in piracy and raiding with the Bronze Age collapse, can be produced by the peoples of the sea, brought this trading system to an end. It was only the restoration of Phoenician trade ninth and tenth centuries BC, saw the return to prosperity, and the appearance of real coinage, probably first in Anatolia with a rich man to Lydia and subsequently with the Greeks and Persians. African numerous ways to store value of used, including beads, ingots, ivory, various forms of weapons, animals that manilla strongest Currency, maize and other earth oxides, and so on. That manilla rings in Western Africa was one of the currency used in 15 th century onwards to buy and sell slaves. African currency is still notable for its range, and in many places various forms of barter still apply.