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Friday, February 6, 2015
Currency Wars and What Happened with the Swiss Franc?
Just a really quick and simple video explaining:
- What happened the other day with the Swiss
- What is a currency war and why it happens
- How to profit from the ECB launching a QE program!
More info, please visit: www.FreeTradingWebinar.com and www.TheRealisticTrader.com
This is only a basic explanation. I have to state (for the more technical minded) that QE doesn't necessarily mean that they will 'print' more currency. Typically the way the Central Banks do QE is by buying up bonds or other asset backed securities. For instance, the FED in the US mainly bought US Treasury Bills.
If the ECB does do QE then it's likely to do it with mortgage backed securities and a selection of Eurobonds. But all you need to remember is that QE is just a way for a Central Bank to control how much of their currency is out there and to get more of it circulating. And the more Euros they can get out there by buying 'stuff', the more it dilutes/devalues the currency...which then makes the currency fall in value against others...
Labels:
Currency Wars,
Swiss Franc
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