Letters To S&C by Technical Analysis, Inc.
I enjoyed Koos van der Merwe’s article on forex in the December 2009 Stocks & Commodities (“Trading Forex”). I was curious if he had any suggestions as to where I can get a good foundation in the fundamental side of forex that he discussed in the article. There are clearly numerous relationships that need to be understood. Any suggestions?
Koos van der Merwe replies:
Forex is about currencies — that is, money used in everyday life. The only way to understand a currency from the fundamental side is to choose, say, two currencies that you are interested in, and then read as much as you can about the central banks that control those two currencies. Try to understand the thinking and tactics used by the governors of those central banks in managing the currencies.