My forex trading assignment for today is to find out what happens to Canada’s ecomony if Japan’s ecomony weakens. Since I have no clue how to figure out this answer on my own, I am going to email the question to some  forex experts and economics experts. Once they answer the question for me I will share the answer with you.

The reason I would like to know the answer to this question is that I feel knowing how one country’s economy impacts on another allows you to better use fundamental analysis to make smart trading decisions. It’s one thing to know that economic news about a nation can impact it’s currency by increasing or decreasing its value. It’s another thing to be able to determine how one country’s news will impact on another country’s currency.

So I will be endeavoring to find out how one country’s good or bad economy impacts on other countries from among the countries whose currency is considered one of the majors. My focus will be on understanding how  Japan’s economy impacts Canada’s ecomony, how Canada’s ecomony impacts the US economy, how the US ecomony impacts Japan’s ecomony, how Japan’s economy impacts the UK’s ecomony, how the UK’s ecomony impacts the US ecomony and so on.

By all means if you happen to have some ideas please share them by leaving a comment. If you’re trading, hope today is a profitable day for you.

My forex trading assignment for today is to find out how falling oil prices affect the Japanese Yen. Since I am focussing my trading on the EURJPY crosses it will be useful for me to know this information. I did find an article from 2005 titled How do oil prices affect currency prices?

According to that article falling oil prices would be a good thing for the YEN but I would have to conclude that falling oil prices would not impact on the YEN in such a way to have any relevance in forex per se.

But I’ll have to pose the question to a few experts to get a more qualified answer. If falling prices benefit the YEN, then rising prices would obviously hurt it, and I can see rising oil prices degrading the value of the YEN in the forex market. But I can’t see falling oil prices having much of any effect on the value of the YEN in the forex market, at least in relation to stronger currencies.

But again, I am not well enough versed in this subject for my thoughts to be considered anything more than someone in the middle of learning and trying to figure it all out. I’ll keep digging and append any other useful resources I find that provide more reliable answers to the question of how oil prices whether rising or falling affect the Japanese Yen and other currencies.