The foreign exchange market is an essential element in the connection of the national and global economies. At the same time, it represents a sector of the financial market that is being formed as foreign economic activity of business entities in a particular country develops. In this sense, the foreign exchange market is the direction of development of the...
In particular, foreign currency is used in settlements, accumulated in bank deposits, can be traded in parallel with the national currency (if this is not prohibited by law), issued to the borrower for credit operations. In foreign currency, quotes for securities and derivative financial instruments are established.
Thirdly, when analyzing the foreign exchange market, it is important to note that this market arises as a result of the development of international exchange and uses a set of tools similar to the tools used in the national money and credit markets.
The economic essence of credit operations is the transfer of temporarily free cash resources of households and business structures to their potential recipients, experiencing temporary needs for such resources to expand current consumption or investment in order to generate income in the future period.
Despite the obvious interdependence, the money and credit markets differ primarily in the economic nature of the operations conducted on them. Short-term operations are concentrated on the money market, ensuring the availability of cash liquidity for the uninterrupted provision of current settlement transactions, including on the interbank market.
A new wave of positive expectations related to the completion of negotiations on mutual trade between the US and China will allow the S & P500 to attempt to gain a foothold above 3,100 points, despite the ambiguous technical picture.
In the absence of an active desire of bidders to fix positions on the eve of Thanksgiving, the S & P500 is able to stay near new highs. Otherwise, correction is not excluded.
Conflicting news from the US-China trade talks will cause the S & P500 to move in the range of 3100-3120 points in the absence of negative signals. The technical picture remains mixed. The index rose yesterday with a gap, which could call into question the further upward trend
US stock indexes closed on December 10 in the red, continuing to decline before the approaching entry into force of additional tariffs on imports of Chinese goods. Messages about a possible postponement of the tariff introduction date allowed the indices to close above session lows.
Investors' risk appetite increased after a large-scale Friday sale. Positive expectations regarding corporate news, macro statistics and economic support measures will allow the S & P500 to continue to grow to 3270 points during today's session.
