So right now we have the E/U still working through the problems with Greece and now Spain has joined in the fray.
On our side of the point, the Fed has decided to start buying up mortgage debt because they're concerned that things are so bad.
If investing in Forex is essentially placing a bet that the economy backing one side of the currency pair is going to impact the price and cause it to go up or down as compared to the other currency on the pair, what happens when things go bad on both sides?
That is, if the value of the dollar should fall because of the Fed's actions but the Euro should fall due to their own little set of problems, do the two situations cancel each other out and bring the pair into a state of harmony?
On our side of the point, the Fed has decided to start buying up mortgage debt because they're concerned that things are so bad.
If investing in Forex is essentially placing a bet that the economy backing one side of the currency pair is going to impact the price and cause it to go up or down as compared to the other currency on the pair, what happens when things go bad on both sides?
That is, if the value of the dollar should fall because of the Fed's actions but the Euro should fall due to their own little set of problems, do the two situations cancel each other out and bring the pair into a state of harmony?