Which foreign currencies are advisable to acquire in those moments in which the fluctuation of these is very abrupt? ?. The acquisition of foreign currencies these days is an activity that is usually very profitable in some cases and not that much in others.
For example, one week ago there was not operator that recomended to buy Reales (Brasilian currency), even if these last days this currency reduced its value. Since 20th november until today the currency reduced its value in 8 cents or 4,4% turning from 1,758 Reales per Dollar to 1.836.
The risk aversion made the investors sell the active in the emerging markets and in that context the Real was punished.
The foreign currency that had the greatest acquisition in these last days was the dollar that increased its value in front of the Euro. The European currency lost a 0,4% to turn to be negotiated at 1.4825 more than a cent under the maximum of the last week.
According to analysts, the reasons of the lows are because, for example, the Dollar raised in front of various currencies of the world, after the Citigroup informed that it will sell a participation of USD 7.500 millions the government of Abu Dhabi (the biggest of the seven emirates that compose the Arabian emirates of the Persian Gulf), which helped to the confidence of the American banks punished.
We will have to see in these next days how does the trend in the acquisition of foreign currencies continue, if this direction continues the American currency could gain ground in not very much time.

The investment in foreign currency is a profitable business. The investment in foreign currencies is a very profitable business as we can play with the quotations that are being modified every single minute. At the forex market foreign currencies are bought and sold. The options about foreign currencies to commercialise in the area are: euro, American dollar, Canadian dollar, Australian dollar, yen and Swiss franc.
The principal characteristic of these options of foreign currencies is that they have the support of the most thriving economies of the world and that at the financial market forex all these are commercialised in pairs. This characteristic allows you to risk but with the security that prices will not fall suddenly.
One of the most quoted examples is the actual situation of the American dollar and its contrast with the euro. The evolution that the European currency has had has left amazed many people and nowadays, at forex market, one of the most used options about foreign currencies is the pair euro/dollar. The margin of profit that this pair generates is remarkable as the rise in the euro quotation over the dollar exceeded the expectations of more than an operator.
Although the bad moment that the dollar is having now, this is still one of the most chosen options of foreign currencies. In these last years the dollar has reduced its value because of the government politics of George W. Bush.
Anyway, the American dollar rules the market because of two reasons, firstly because it is the currency with which crude is bought and secondly because the Exchequer bonds of the United States are the reference that the countries have to measure the country risk. The country risk is the indicator that measures the confidence index of a nation based in the interest rate that are paid by the coupons of the American Exchequer. Suppose that the interest rate that the United States pay for the performance of a bond is 4% and Spain pays 8%. The Spanish country risk will be 400 points, it means that for each point the percentage rate of the difference, it is around 100 basic points in the country risk scale.

Which factors intervene for generating the evolution of the foreign currencies?. At the Stock market there are many actors that influence on the evolution of the foreign currencies. For example non financial companies, exchange brokers, people in charge of Commercial Banks to influence on bank activities, multinational companies, commercial banks that act as mediators among the ones that supply and those that demand foreign currencies and at last, the Central Banks. On this depends, not only the exchange rate, but also the monetary system, this entity politics modify the incomes in dollars, making them become national currency. Of all these factors depend the evolution of foreign currencies but fundamentally what is important is the exchange rate, this is one of the most important factors while measuring the evolution of the foreign currencies of a nation. The exchange rate is fundamental in economy and also as a thermometer of the evolution of foreign currencies. To establish an exchange rate is important as it allows the conversion of the currency of a country in the currency of other country, making international commerce of goods and services become easier. The exchange rate will determine the competitivity of the foreign currency and of the products of a country, for example agricultural products that are generally exported.Nowadays the evolution of foreign currencies is measured compared to the reference currency that is the dollar, eventhough what happens in the actual world is that the devaluation of the American currency generates an automatic evolution of the foreign currencies all over the world.

Why is the purchase and sell of foreign currencies a profitable business and what factors influence on the quotations changes?. Today in the foreign currencies market there is a great volatility because of the raise of the crude price and the weakness of the dollar.
One of the person that has predicted what will happen with the crude price in 2008 was Ahmed Kaki Llaman, ex president of the OPEP (Organization od Crude Exporters Countries), who said that next year the barril price could be reduced until 75 dollars, according to Llaman this will depend on the evolution of the economy of the United States and the decision that takes the OPEP on its meeting of the 5th December in Abu Dhabi. It is important to remind that some days ago the proposal made by Venezuela was rejected and supported by Ecuador that has as an aim exchange the dollar per the euro for the crude purchase.
In front of this scenario the traders of the forex market try to do a more intuitive interpretation. A growing of the volatility in the long term is signal that the direction of the pair is strong, while a low of this, shows that the pair will float. The most experienced traders have shown that the most effective formula in the purchase and sale of foreign currencies is to continue with the direction of the pair rather than speculating about the trend as it can take some problems.
Every future decision will influence on the liquidity of the market, in the force in the future of some foreign currencies and the weakness of others, and above all, it will have a great incidence on the purchase and sale of foreign currencies. The foreign currencies market make us live with this constant changes and is our must to be able to carry them out on the best way to be able to take advantage of the situation.