http://www.theforexnittygritty.com/forex/best-minor-currency-to-trade - Best Minor Currency to Trade - What is the best minor currency to trade? The economies of Brazil and Mexico, India and China, as well as Russia are growing. Increasing commerce will result in increasing currency exchange. Choosing the best minor currency to trade will depend upon a number of factors including potential profits, high volume markets, liquid markets, and evolving Forex market sentiment. In general, a prosperous economy will result in a more valuable currency. That having been said, nations such as China are accused of currency manipulation. To the extent that a nation manipulates its currency it might not be the best minor currency to trade. Such thoughts need to be part of how to develop a Forex trading system for minor currencies.
Mexico
The Mexican peso (MXN) is the 12th most traded in the world and the third most traded in the America’s after the US and Canadian dollars, both classified as major currencies. An exception for the Mexican Peso is that it can be traded against the New Zealand dollar as well, NZD MXN. Mexico had a growth rate of 3.8 percent in 2011. A strong advantage to picking the Mexican Peso as the best minor currency pair to trade is its relatively high trading volume, especially against the US dollar. Mexico’s proximity to the USA may also be helpful in looking at the fundamentals that drive Mexican currency exchange rates.
Brazil
Despite the strength the emerging Brazilian economy the real commonly trades only against the US Dollar, USD BRL. Brazil’s economy grew 2.7 percent in 2011. The long term direction for this currency will probably be up as Brazil emerges as the super power of Latin America. How fast the rise occurs will decide if this is the best minor currency to trade.
India
The Indian Rupee, INR, trades against all major currencies. The country had a 7.8 percent growth rate in 2011. The same argument used for Brazil works for India. The world’s largest democracy is growing rapidly which will likely drive the rupee upward as well. The openness of India’s society makes where to get important Forex news less of a problem than with countries such as Russia and China. The twin factors of transparency and growth may well make the Rupee the best minor currency pair to trade.
Russia
The Russian Ruble (RUB) trades against the US Dollar and the Euro, USDRUB and EURRUB. Russia’s economy grew by 4.3 percent in 2011. More effective development of its natural resources is Russia’s trump card and a vote for the Ruble as the best minor currency pair to trade.
China
China’s currency, the Yuan, does not float freely in an open market and the country is under repeated pressure from the European Union and the United States to let its currency rise to a market driven level. China’s economy grew by 9.2 percent in 2011.
2. To see a complete version of this presentation and
to obtain our free EBook follow this link:
http://portal.sliderocket.com/BLOUC/Best-Places-
on-Earth-to-Invest
Read the Forex Conspiracy Report for insights into
trading foreign currencies. Get your copy at
http://portal.sliderocket.com/BLOUC/Best-Places-
on-Earth-to-Invest
www.TheForexNittyGritty.com
3. What is the best minor currency to trade?
www.TheForexNittyGritty.com
4. The economies of Brazil and Mexico, India and
China, as well as Russia are growing.
www.TheForexNittyGritty.com
5. Increasing commerce will result in increasing
currency exchange.
Choosing the best minor currency to trade will
depend upon a number of factors including
potential profits, high volume markets, liquid
markets, and evolving Forex market sentiment.
www.TheForexNittyGritty.com
6. In general, a prosperous economy will result in a
more valuable currency.
That having been said, nations such as China are
accused of currency manipulation.
www.TheForexNittyGritty.com
7. To the extent that a nation manipulates its currency
it might not be the best minor currency to trade.
Such thoughts need to be part of how to develop a
Forex trading system for minor currencies.
www.TheForexNittyGritty.com
8. Mexico
The Mexican peso (MXN) is the 12th most traded in
the world and the third most traded in the Americas
after the US and Canadian dollars, both classified as
major currencies.
www.TheForexNittyGritty.com
9. Mexico had a growth rate of 3.8 percent in 2011.
A strong advantage to picking the Mexican Peso as
the best minor currency pair to trade is its relatively
high trading volume, especially against the US dollar.
www.TheForexNittyGritty.com
10. Mexico’s proximity to the USA may also be helpful in
looking at the fundamentals that drive Mexican
currency exchange rates.
www.TheForexNittyGritty.com
11. Brazil
Despite the strength the emerging Brazilian
economy the real commonly trades only against the
US Dollar, USD BRL.
www.TheForexNittyGritty.com
12. Brazil’s economy grew 2.7 percent in 2011.
The long term direction for this currency will
probably be up as Brazil emerges as the super
power of Latin America.
How fast the rise occurs will decide if this is the best
minor currency to trade.
www.TheForexNittyGritty.com
13. India
The Indian Rupee, INR, trades against all major
currencies.
The country had a 7.8 percent growth rate in 2011.
www.TheForexNittyGritty.com
14. The same argument used for Brazil works for India.
The world’s largest democracy is growing rapidly
which will likely drive the rupee upward as well.
www.TheForexNittyGritty.com
15. The openness of India’s society makes where to get
important Forex news less of a problem than with
countries such as Russia and China.
The twin factors of transparency and growth may
well make the Rupee the best minor currency pair to
trade.
www.TheForexNittyGritty.com
16. Russia
The Russian Ruble (RUB) trades against the US
Dollar and the Euro, USDRUB and EURRUB.
www.TheForexNittyGritty.com
17. Russia’s economy grew by 4.3 percent in 2011.
More effective development of its natural resources
is Russia’s trump card and a vote for the Ruble as
the best minor currency pair to trade.
www.TheForexNittyGritty.com
18. China
China’s currency, the Yuan, does not float freely in
an open market and the country is under repeated
pressure from the European Union and the United
States to let its currency rise to a market driven
level.
www.TheForexNittyGritty.com
19. China’s economy grew by 9.2 percent in 2011.
Although the China current account surplus is
reduced such fundamentals may still have less to do
with the value of the Yuan than decisions by the
Chinese hierarchy.
www.TheForexNittyGritty.com
20. This may not be the best minor currency pair to
trade unless you have a crystal ball that tells you
what the Chinese hierarchy is about to do.
As usual we offer this discussion in order to
stimulate thought and not as explicit advice.
www.TheForexNittyGritty.com
21. Do your own fundamental and technical analysis
and never trade when you do not understand what
the markets are doing.
www.TheForexNittyGritty.com
22. For more insights and useful information regarding
the Forex markets and foreign currency trading, visit
www.TheForexNittyGritty.com.
