All stock traders / CFDs are trained to see the company’s sales data and gross domestic product (GDP), this is useful for projecting the next stock / cfd trading.
For stock investors / CFDs, foreign currency fluctuations can be profitable and unprofitable, while for currency traders, stock movements / CFDs (read about CFD products) can help to determine whether the market as a whole is looking for risky investments or is avoiding risk so potentially will increase the thrust on the movement of forex.
With this information, traders and investors can get a better understanding of the close relationship between these two markets and also gain additional benefits in analyzing market direction.
Currency Impact on Shares / CFDs
Many ways to know the currency movement (read about currency products) that impact on the movement of stock / CFD. For multinational corporations, currency fluctuations may increase or decrease foreign revenues. For importers and exporters, exchange rates can affect profitability and sales. Let’s see how this relationship works.
Currency fluctuations can create a negative performance or performance from the industry. The French-based Boeing and Airbus plane is a company that recognizes the difference in profitability between 2006 and 2007 when the Euro is priced at 20% against the US dollar. Boeing, a US-based aircraft manufacturer, got a sharp increase in orders for its Dreamliner jet when there was an important shift in interest after the Euro rose 1.18 to 1.42.
While Airbus suffered greatly because of the strengthening of the Euro. In the third quarter of 2007, Airbus announced that it would cut 10,000 workers and accelerate production of the new jumbo jet to tackle the $ 810 million loss.
Impact of Shares / CFDs on Currencies
The strong relationship between stocks / CFDs and currencies is the relationship between carry trades and the Dow Jones movement (see also the Dow Jones index). In 2007, you can see many currency pairs can be categorized as carry trades. Maybe use full