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Old 05-20-2008, 06:10 PM
Oegma
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Question Weakening verus Strengthing

Hi Dave

Awesome site for any trader

But something that is key in the FX market is the moving (strengthing/weakening) of currencies

So, if I understand this tutorial correctly on exporting, importing and trade flows

- Heavy Importing Countries -> Weakens that country's currency

The word weakens is the key here. We prbl need to look at an example..weaken in terms of other currencies?

If we take a example of USD/JPY and we focus on the importing of USD, if we keep everything else the same and look at the importing factor only, ...the more and more USD imports the "weaker" USD is going to be against JPY...

Thus if we start with USD/JPY say at 120.00 and USD is importing more and more goods from JPY, this exchange rate will then rise to 122.00, 123.00 ...and so on ?
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