{"id":15335,"date":"2010-11-14T10:05:00","date_gmt":"2010-11-14T15:05:00","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=15335"},"modified":"2010-11-14T10:05:00","modified_gmt":"2010-11-14T15:05:00","slug":"the-impending-currency-wars-and-the-forex-market","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/11\/14\/the-impending-currency-wars-and-the-forex-market\/","title":{"rendered":"The Impending Currency Wars and The Forex Market"},"content":{"rendered":"<p><strong>By James McKee<\/strong><\/p>\n<p>As economic conditions grow worse throughout the world many officials  are left with wondering if it is time to &#8220;pull out all the stops&#8221; and  begin resorting to currency wars. The primary focus of the recent G20  summit seems to have been trade deficits between China and the United  States in which the United States appears to be seeking out solutions.  This has upset many smaller nations who feel that the G20 should have  been more &#8220;well rounded&#8221; and addressed problems aside from those being  suffered by the United States. The recent rise and fall of the US dollar  certainly seems to be on everyone&#8217;s mind when it comes to the Forex  market and the United States government seems to be making efforts to  release its trading deficit.<\/p>\n<p>When one country&#8217;s currency is devalued by another this can result in  the rapid buying and selling of the opposing country&#8217;s currency,  depending on the situation this cause either a rise or a fall in their  currency value. Such efforts may in fact prove to be necessary if events  such as the G20 leave many countries feeling &#8220;out in the cold&#8221; with  regard to global economic policy change. This can certainly be a good  thing for Forex traders though because currency wars will be very public  affairs with predictable results that a clever trader can bet on  accordingly.<\/p>\n<p>One of the other major issues on the chopping block at the G20 summit  was an initiative to limit a country&#8217;s surplus to 4% of their own GDP.  This is a move that many believe will motivate China to raise the value  of their currency. This is a move that would force China to spend  considerable amounts of their enormous financial surplus that severely  dwarfs any other in the world. If this did come about it would help the  US economy immensely and of course every other economy in the world.<\/p>\n<h3>About the Author<\/h3>\n<p>Author is a Forex trader and financial analyst residing in  Denver, Colorado. To stay up to date on all the latest developments in  the financial world and beyond be sure to check out the <a href=\"http:\/\/forex.tradingcharts.com\/foreign_exchange_rates\/\">forex exchange rates<\/a> regularly.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By James McKee As economic conditions grow worse throughout the world many officials are left with wondering if it is time to &#8220;pull out all the stops&#8221; and begin resorting to currency wars. The primary focus of the recent G20 summit seems to have been trade deficits between China and the United States in which &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.investmacro.com\/fx\/2010\/11\/14\/the-impending-currency-wars-and-the-forex-market\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;The Impending Currency Wars and The Forex Market&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-15335","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/15335","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=15335"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/15335\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=15335"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=15335"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=15335"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}