Fascinating Hong Kong
Hong Kong greets visitors from all over the world with a wide grin. The urban embodiment of the balancing act between Chinese and European cultures, Hong Kong has long been one of the most exciting cities on the planet.
Few travel to Hong Kong for the sights; they come for business and excitement. Hong Kong is so lively it sizzles like the oil in the woks of its ubiquitous street food vendors. Little has changed since the 1997 return of the British colony of Hong Kong to China. The city that flourished through co-operation between the Chinese and British societies is, if anything, more fascinating and interesting than ever before.
Opium highs and wars.
In the early eighteenth century, the first British traders to arrive at what would be Hong Kong, found only a few fishing huts. Hong Kong had no importance at all within the Chinese Empire and had been ignored for centuries.
The British built a trade port here in 1711, and it thrived during the early nineteenth century when goods from China were in fashion in Europe.
As the fashion for things Chinese waned the British began to trade in opium instead, growing it in India and importing it illegally into China, where the Qing dynasty emperor had banned its sale. When the Chinese tried to halt the imports, the British responded with force.
The resulting Opium Wars (1838-1856) were disastrous for China. In 1842, the British took control of the city of Hong Kong and it became a British colony. A 1898 pact with China made Hong Kong and 234 nearby islands a British protectorate for ninety-nine years. The treaty ended in 1997.
Negotiations took place in 1982 to modify the original agreement in order to protect Hong Kong’s special status. China had originally demanded control not only of the so-called “New Territories” around the city, but also of Hong Kong itself. Through a series of agreements and concessions, Great Britain was able to prevent Hong Kong from being directly incorporated into mainland China. Instead, on 1 July 1997, Hong Kong was declared a Chinese Special Administrative Region.
Skyscrapers and feng shui.
Hong Kong’s special status has allowed it to remain a modern economic metropolis. Despite its visible modernity, traditional ways of life are never forgotten. The ancient Chinese art of feng shui is still applied to new constructions, where measurements are configured according to lucky numbers and windows positioned so as to let good luck in and bad luck out.
Skyscrapers loom where splendid colonial buildings once stood, only a few of which have survived. In the central district, the Cathedral of St. John, the former French Residence and the Legislative Council Building are among the few traditional buildings that remain.
Omnipresent Buddha.
Traditional life has a strong influence in the New Territories than in the city itself. Superb temple complexes are everywhere, built in traditional style in tranquil settings. 10,000 Buddhas Monastery is one of the most visited. This number represents “very many” or “countless” in Chinese, rather than a specific number of Buddhas.
In fact, there are more than 10,000, perhaps as many as 13,000. The enormous bronze Buddha towering above Lo Pin Monastery on the island of Lantau is the largest Buddha in the world, measuring 26 metres tall. Visitors can climb a steep path of 260 steps to reach it. The panoramic view from the top definitely rewards the effort, as does the spiritual enlightenment achieved along the way.
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Sphere: Related ContentAll About Forex
Oil, Gold and the foreign currency exchange market are three different markets that are reliant on each other. If you are interested in Forex trading, knowing what one does may give you an insight where the other markets may be going. It would be useful to become familiar with those different markets as a trader and get some Forex education.
Let’s have a look at those intertwined markets and how they are all interconnected.
GOLD
There is an inverse correlation for markets such as gold or oil that are priced in U.S. dollars in the finance world. When the U.S. dollar loses value, not only do foreign currencies go up, but gold prices also increase. Studies have shown a negative correlation between gold and the dollar that is, they almost never move in tandem, but almost always move in opposite directions.
The value of EUR/USD versus gold prices, on the other hand, shows a very high positive correlation, this means that the value of the euro and gold prices often go hand-in-hand, suggesting these markets are both beneficiaries when funds are flowing away from the U.S. dollar.
Gold prices may be considered as an important component in the analysis of the forex market. A trend change in gold price may give a good clue to where the US dollar may be heading in the Forex market.
OIL
A increase in crude prices directly relates to a weakness in the US. Foreign oil producers view the increase in oil prices as a way to maintain their purchasing power in U.S. dollar terms. Forex brokers will tell you to counter the impact of higher oil prices a weaker dollar could ultimately give rise to inflation.
Oil is a key commodity driving global economic growth, and oil prices and the foreign exchange have a key relationship in the global economy.
Now lets have a look at the impact an increase in oil prices may have on the different major trading currencies around the world.
Japan: Economy suffers as it relies on imports for most of its energy needs, therefore the Yen weakens.
UK: Benefit the economy as UK produces oil. British pound strengthens.
Oil in world business has a heavy impact on the Forex market. Thus any disturbance in supply is likely to affect the foreign exchange market.
Some of these factors may be terrorist attacks, natural disasters and wars. In such times a shift from the dollar to the euro as the designated currency in crude oil could occur thus causing an immediate decline in the value of the U.S. dollar.
Gold and oil are not the only commodities affected by changes in forex values. Exports of agricultural produce account for a large share of U.S. domestic income.
When the value of the dollar rises, it tends to limit buying interest from an importing nation as the commodity becomes less affordable in terms of that nation’s domestic currency.
When the value of the dollar declines, it reduces the price to an importing nation in terms of its currency and encourages it to buy more U.S. agricultural products. The influence that one market has on another market naturally shifts over time so these relationships are not static but should be the subject of ongoing study.
You as a Forex trader should be aware of the influence that those different markets have on the Forex. Though the changes may not happen quickly, it may however give you an insight on any possible trend changes in the near future. Happy trading. BSFT220409
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