Corporate brokers are firms and individuals that offer advice and services to help companies raise capital through a wide range of investment methods. Highly knowledgeable about many financial markets, they can be used to generate interest among investors for their client’s shares or for providing ideas of fund raising through investing in other shares and markets.
Currency pairings and many other macroeconomic factors are used by corporate brokers such as WHIreland plc to pick out potential opportunities for their clients. This also adds to their reputation and provides confidence in their services.
The Forex Market
Through monitoring currency pairs and their price movements, corporate brokers can identify any strengths and weaknesses in that market. This could be used to advise a business to invest in a certain currency that could be about to rise in value, sell off or avoid other ones that are set for a drop-in price.
The forex market also influences many other financial markets, such as stocks and shares, commodities and more. For example, if the US dollar was to weaken then it could be expected that the Dow Jones and S&P 500 would also fall as they are closely correlated. The opposite would be true if the dollar were to strengthen.
Unemployment and Inflation Levels
Macroeconomic factors such as unemployment and inflation levels will influence a corporate broker’s decision and advice. Unemployment levels are often a good indicator of a nation’s economic performance and can also impact upon currency pairings and their values.
Inflation levels affect the economy as well and can have a more direct impact upon business, by increasing many costs. Corporate brokers will need to keep a keen eye on this to ensure the businesses they are working with remain in a strong financial position even when the economy they are working within may be experiencing a volatile time.
The economic output is the total value of goods and services produced by one economy and can be analysed to measure whether it is growing or contracting. Corporate brokers will use this for the economy their clients are based in as well as others, to determine opportunities to invest.
Whether the economic output is good or bad, for corporate broking keeping a regular eye on this for various economies is highly advantageous for providing advice. This should demonstrate how corporate brokers use information from the forex market and economies to determine their advice and actions for businesses they work with or within. Personal Finance and market trends should be a key point of focus if a business owner is to continue developing at a steady rate.