How are exchange rates determined?

[BentRod]

I tried to buy USD today 27/12 and my Broker web site told me the market was closed???
I assume "cos the USA was on hols. ????

It was a Saturday :error::bonk:

 

[Stormin_Norman]

the foreign exchange market is quoted in a ratio of two currencies.

currency1/currency2.

ie euro/usd

4 factors move this ratio.

demand for currency1 (price positive)
supply for currency1 (price negative)

demand for currency2 (price positive)
supply for currency2 (price negative)

figure all that out however is not easy.

 

[>Apocalypto<]

It was a good explanation!

Which factors explain the EUR/GBP exchange rate at the moment? It's nearly at parity, a record low for the GBP. I've gone silly over Christmas buying up big on Amazon.co.uk and figuring out how to get Dell.co.uk to deliver to the continent. The UK is on sale!

the yields are driving the EUR up atm and the BOE has publicly said that they plan to devalue the pound doing to save/stimulate the housing market.

I am not sure how that will go by looking at the US as a example of rate cutting and quantitative easing.

cheers

 

[Glen48]

Bent Rod what does trade 24/7??

 

[Stormin_Norman]

Bent Rod what does trade 24/7??

seven eleven?

 

[Naked shorts]

lol stormin

Glen, the currency market trades 24/5.5 which is more often then anything else.

 

[Glen48]

So all I have to do is work out the connection between 7/11 and their currency flow and I am on a winner.? I do know the Indians have their own Bollywood James Bond called 007/11