Chapter 8 – Currency Analysis (Part I)

I feel this course will be incomplete unless I include this section. Most of the information included in this section might seem basic, but some are quite advanced in my opinion. I would recommend that you go through each and every currency and hopefully you will understand them better.
Let’s get started!


  • The original Euro Zone is made up of 12 countries, and they are: Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, Netherlands, Portugal, Slovenia, and Spain.
  • The major countries in the EURO Zone are: France, Italy, Germany, and Spain.
  • There are over 500 million people using Euro as their currency.
  • The EUR/USD is one of the most traded currency pair in the Forex Market. It covers about 50% of all the activities of the Forex Market.
  • EUR/USD valuation is primarily driven by the US Dollar Index. Since US Dollar is on 90% of all currency trades. USD is the dominant currency.
  • US Dollar Index is made up of: Euro 58%, Yen 13%, Pound 12%, Canadian 9%, Swedish Kroner 4% and Swiss Franc 4%. (AUD & NZD are not included in the Index)

By looking at correlations of USD/CHF and EUR/USD, one can use movements on the Swiss Franc as gauge to market sentiment.

If USD is weak, EURO gets a default boost as it is the 2nd most traded currency. If USD is strong, EURO will be weak as default.

US Dollar Index & EUR/USD 3 Year Chart

Euro Zone

Central Bank Governor: Mario Draghi

Voting Members: Vito Constancio, Jorg Asmussen, Benoit Coeure, N.N., Peter Praet, Luc Coene, Jens, Weidman, Patrick Honohan, George A. Provopoulos, Luis Maria Linde, Ardo Hansson, Christian Noyer, Ignazio Visco, Panicos Demetriades, Yves Mersch, Josef Bonnici, Klaas Knot, Ewald Nowotny, Carlos Costa, Marko Kranjec, Jozef Makuch, Erkki Liikanen.

Current Interest rate: 1.00%

United States

Central Bank Governor: Ben S. Bernanke

Voting Members: William C. Dudley, Elizabeth A. Duke, Jeffrey M. Lacker, Dennis P. Lockhart, Sandra Pianalto, Jerome H. Powell, Jerome H. Powell, Jeremy C. Stein, Daniel K. Tarullo, John C. Williams, Janet L. Yellen.

Current Interest rate: 0.25%


Pages: 1 2 3 4

About Kelvin Ching

I'm a professional Forex trader and I have been trading for over 7 years. I was a series 3 broker and a registered CTA with the NFA, the main regulatory agency in the United States, and I have been involved at the highest levels in commodity trading. I also have a background in Information Technology, graphics design, and programming... I'm the co-founder of, a site dedicated to fundamental analysis and news trading.


  1. Is there any way to get this book in PDF format
    Thank you
    Marat B

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