FX Market & News
Fx Users
Exporters
| Importers | Fund
Managers | Non-Banking
Institutions
Global Fund Managers
| Forex Banks | Government
Central Banks
Other Government Agencies
| Speculative Traders
The Forex market is controlled and powered by groups
who conduct currency exchange as a common part of
their daily business.
Let's look at some of these groups who shape the forex market.
Exporters
Exporters are any businesses who export goods and
services. They consist of a wide diversity
companies across the globe. National export
volumes indicate just how much foreign exchange
is transacted by this
group. Exports are often lead by the resource sector
companies. Overall, exporter's business activities
will increase the value of a country's currency.
Our specialization allows us to provide an excellent
range
of pricing and better services to small/medium sized
companies than European banks.
Importers
Goods and services Importers utilize foreign
exchange markets to acquire the appropriate foreign
currency of a country where they have made a purchase.
Imports in general will decrease the value of the
importing country's currency.
Investment Fund Managers
With the growth of the FX industry, fund managers
have been, where possible, investing heavily in
foreign
securities and other foreign financial assets/instruments.
The net effect of fund manager involvement in the
market depends on the investment decisions they make.
Fund managers' activities have a tendency to influence
the value of a local currency when they hedge their
investments or foreign purchases. Fund Managers
may
enter the market as buyers of forwards contracts
and options. This may offset the depreciating effect
of
their purchase of foreign currencies.
Non-Banking Financial Institutions
Financial corporations, such as Cambridge Mercantile, which deal in specialty
services primarily related to international finance are among this group of
forex
market participants. Our international financial knowledge and experience makes
us specialists in dealing with multinational financial concerns such as foreign
exchange. Our specialization allows us to provide an improved range of pricing
and better services to small/medium sized companies than the UK or other European
banks.
Global Fund Managers
If global fund managers are interested in transacting in national asset markets,
they can influence those markets. When local stocks and bonds are attractive
and the national economy sees a substantial influx of global capital from Global
Fund Managers, the value of that country's currency is driven up. However, when
this hedges existing investments, they can create selling flows.
Banks
Banks are takers of currency deposits. These commercial institutions are licensed
to make and receive payments. And they also support an array of other financial
services including foreign exchange.
As part of a system of balancing accounts, UK banks and other national banks will
trade currencies among themselves. Small and medium sized enterprises and individuals
will typically pay a large premium when transacting foreign exchange with their
local branch. Exchange rates for larger customers will be more reasonable.
Government Central Banks
Using Britain as an example, the Bank of England generally lets the market
determine the value of the British Pound.
But there are a few exceptions to this policy. The Bank of England may intervene
to buy or sell British Pounds if they believe it is substantially under or overvalued
or that this low/high value is creating a negative effect on the economy.
Other Government Agencies
Many UK government agencies, as in other European nations are exposed to foreign
exchange risk either as exporters, importers or borrowers.
Currency Speculators
Currency speculators buy and sell currency for traders
and forex banks. Cambridge is not
involved in currency speculation. Our focus is foreign
exchange and international
payments.
Cambridge Mercantile UK offers
low foreign
exchange rates. Our foreign exchange services
include money
transfer, currency monitoring and currency quotes.
If you're purchasing properties
in Spain and need fast, secure transfer of your
money from Britain to Spain, Cambridge Mercantile's
UK or Spanish traders based in London will be happy
to assist you with facilitation your payments from
Britain to Spain. |
