More Fundamentals In FX Market

Today we look at Capital and Trade flow

Capital flows and trade flows constitute a country's
balance of payments which quantifies the amount of
demand for a currency over a given period oftime.
Theoretically a balance of payments equal to zero
is required for a currencyto maintain its current
valuation. A negative balance of payment number
indicates that capital is leaving the economy at a
more rapid rate than it is entering, and hence
theoretically the currency should fall in value.

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