This forum is for those wishing to discuss the fundamental factors affecting the Forex. How will the next news report affect a particular currency? Find out here. You can also keep tabs on how economic trends can affect your trading at our Piponomics Forex Blog.
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I know that there are many factors that affect the Forex Market! One of these factors is inflation. The question to what extent does inflation affect currency movements. We can assume that a “loose money situation” where the government is borrowing or spending likely places downward pressure on a currency.
Government spending places downward pressure on a currency because of a factor like inflation. The extent of the downward pressure hasn’t from my research been given a a quantifiable measure. There has just been somewhat of a correlation between currency decreasing in value and an increase in government spending.
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Info which is shared here is very useful, thanks.
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hmmm, it’s very interesting
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economic factors: Macroeconomic and Microeconomic
political factors: government and economic policy
psychological factors: euphoria and panic
Political factors: Among the political factors, we can also find many other factors. Among these factors are some such as economic policy or government stability.
Economic factors: Regarding economic factors, the trend is the same. We only have to think about the number of economic indicators that exist. For example, GDP, indicators of industrial production, data on oil reserves, inflation, debt or unemployment.
Psychological factors: And, of course, psychological factors. It should be noted that, according to the BIS, 50% of foreign exchange market transactions are carried out between banks. Of course, who runs the banks? Indeed, people. Normally, the psychological factors that affect buying or selling a currency are driven by expectations regarding political or economic factors. Therefore, it is still a reaction to the factors that really influence.
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interesting post
for various factors, such as the country’s economy, the trade deficit, the political and social environment.
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I know that this is a platform dealing with the currencies and the interalationship between different specific currencies. It also shows the trends in the forex and the cryptocurrencies. It is a journey that also the serious guys normally succeed. Success will depend on the seriousness of each individual.
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8 Key Factors that Affect Foreign Exchange Rates that will affect the economics
- Inflation Rates. Changes in market inflation cause changes in currency exchange rates. …
- Interest Rates. Changes in interest rate affect currency value and dollar exchange rate. …
- Country’s Current Account / Balance of Payments. …
- Government Debt. …
- Terms of Trade. …
- Political Stability & Performance. …
- Recession
- Speculation.
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I found some good info here, useful thread for new traders. Can’t afford to ignore the fundamentals that affect trades
Gross Domestic Product Annualized, USA
WHAT IT INFLUENCES: USD and its subsequent pairs
WHAT’S HAPPENING: The Gross Domestic Product Annualized report released by the U.S. Bureau of Economic Analysis shows the monetary value of all the goods, services, and structures produced within a country in a given period of time. GDP Annualized is a gross measure of market activity as it indicates the pace at which a country’s economy is growing or decreasing. Generally speaking, a high reading or a better than expected number is seen as positive for the USD, while a low reading is negative.
Durable Goods Orders, USA
The Durable Goods Orders, released by the U.S. Census Bureau, measure order costs received by manufacturers for durable goods (3 years or more), such as motor vehicles and appliances. As those durable products often involve large investments, they are sensitive to the U.S. economic situation. The final figure shows the state of U.S. production activity. Generally speaking, a high reading is bullish for the USD.
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Antrush: The Bank of Japan announced that it is doubling down on its existing policy of capping 10-year Japanese government bond yields and will intervene daily in unlimited auctions to defend its cap. This set loose an explosion higher in the Japanese yen, a move that was partially matched by a fresh surge in USDCNH. Are we set for a USD strength crisis? Elsewhere, US equities managed to pull back from the brink again, with less-bad-then-feared Meta results driving an after-close rebound.