What Supports Currency Prices?
Several factors determine the price of any given country’s currency. A 4D analysis helps you visualize those influences. Here, we examine what held up those values on July 12, 2019.
As the red Demand Plane shows us, as the amount of currency issued increases, its price generally falls.
We can (and, in this case, must – we can’t get a functional equation without it) use this influence with others to predict sustainable currency prices in USD. In the left Value Space, the plane running through the data indicates currency value goes up with added Foreign Exchange Reserves and down with Volume. The P-Value for this equation is 3.30E-12. The chance it accidentally predicts the data is that low.
The case manifests The Law Of Value And Demand, which states:
- Features determine Value
- Value affects Price
- Price influences Quantity sold and
- Quantity sold is a feature.
The equation explaining the plane in Value Space uses the Prime Rate, set to 2%. What happens if we set the Prime Rate to 63%? Check the next post for the answer.
#demand #currency #prices #markets #currencytrading
