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Including, if you should so with, synthetics which all involve a currency transaction which mimics the movement of any bond, interest rate, stock, commodity.
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Except the Swiss central bank went into the market a few days back and insisted that the Swiss Franc would rise no more and that led to an 8% fall: a huge movement for a currency in such a short time span.
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We have been spoiled by our home business market of more than 300 million people who speak the same language, largely embrace the same culture, abide by the same laws, use the same currency and have freedom of movement and disposable income.
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The single currency looks to have room for further upside movement as the short positions in EUR remain significant and the recent upwind of further bets against the currency could push the EUR outright higher.
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Due to the slightly delayed impact of these movements on the currency market, there is generally an opportunity to overlay a broader movement that is happening in the commodity market to that of the currency market.
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This is the reason many investors refrain from playing too much in territories that could lead to sharp losses on a sudden movement, like a devalued currency.
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Its purpose is to promote free trade and the fluid movement of goods, peoples, and currency.
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The tussle over Antonveneta has implications not just for prospective investors in Italy, but also for the Europe's single currency, which relies for success on increasingly free movement of capital.
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Free capital movement and pegged exchange rates are a dangerous mix (unless the currency is fixed under a currency-board arrangement as in Hong Kong, where all local currency must be fully backed by American dollars).
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