Current issue - Vol. 19, No. 1all articles

FOREX MARKET AS THE BEST POSSIBLE WAY OF INVESTING MONEY DURING ECONOMY BOOM AND RECESSION

Wojciech Zembura
pages: 8-20; JEL classification: E44, F31; Keywords: currency exchange rates, Foreign Exchange, macroeconomic data; Since the beginning of the 1980s, a continuous process of integration of national and regional markets into one global market for goods, services and capital can be noticed. Both economic theory and market practice indicate that the level of the exchange rate primarily depends on macroeconomic variables (such as interest rates or the number of new jobs in the nonagricultural sector). The results of the research presented in the article regard the importance of US macroeconomic data publications for the short-term volatility of EUR/USD exchange rate. The main purpose of the study was to show whether macroeconomic data from the United States affects the short-term development of the EUR/USD exchange rate and whether the Forex market is a good way to multiply capital. The following research questions have been posed: does the EUR/USD exchange rate react to the published macroeconomic data from the American economy? Second, is whether investing in the Forex market could be a way to multiply capital in times of economic boom and recession. This paper presents the effects of my own research and observations in terms of the impact of US macroeconomic data, on shaping exchange rates of the Forex market. Based on my own investment experience my goal is to prove, that Forex market is a perfect way to multiply capital.
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