Analysts, reviewing the ups and downs of the stock market in 2014,
discovered that foreign investors usually helped to increase sales when
the dollar price rose in value.
Though foreign investors’ trading value accounts for a small percentage of the stock market’s trading value, their decisions always have an impact on the stock market because they affect domestic investors.
Domestic investors fear that foreign investors will withdraw their capital to make money from the greenback appreciation. If so, foreign capital flows to the stock market will fall sharply, they believe.
The problem is that the dollar has been appreciating rapidly within a short time.
The US Dollar Index, which is used to measure the dollar against six other hard foreign currencies, increased by nearly 13 percent in the months from July to December 2014.
The sharp increase in the greenback value showed the strong recovery of the currency after years of fluctuations due to the unstable US economy.
The impressive return of the greenback is attributed to the strong recovery of the US economy.
The US GDP grew by 5 percent in the third quarter of 2014, the highest growth rate in 11 years.
The labor market has warmed up with 400,000 new jobs created in October and November, according to an ADP report.
Read more Click here / www.trade4x.net
Though foreign investors’ trading value accounts for a small percentage of the stock market’s trading value, their decisions always have an impact on the stock market because they affect domestic investors.
Domestic investors fear that foreign investors will withdraw their capital to make money from the greenback appreciation. If so, foreign capital flows to the stock market will fall sharply, they believe.
The problem is that the dollar has been appreciating rapidly within a short time.
The US Dollar Index, which is used to measure the dollar against six other hard foreign currencies, increased by nearly 13 percent in the months from July to December 2014.
The sharp increase in the greenback value showed the strong recovery of the currency after years of fluctuations due to the unstable US economy.
The impressive return of the greenback is attributed to the strong recovery of the US economy.
The US GDP grew by 5 percent in the third quarter of 2014, the highest growth rate in 11 years.
The labor market has warmed up with 400,000 new jobs created in October and November, according to an ADP report.
Read more Click here / www.trade4x.net
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