Which factors influence the exchange rate?

[Sameeh]

Mainly the exchange rate of the currencies controlled by the big central banks of the countries and they are the big players in forex and so most of the moves of the market happens by them then the economic crisis or big events has a great effect also on the market and so we find that the market has big volatility and this makes the winning and loses have the same chances and the trader may win or lose any trade, the trader that can read the news well and read for the big traders or analyzers will understand how the market works and how he can expect its next movements and so he will fall in the traps that sometimes made in the market nd will become a good trader and will protect his money and makes profits at the same time

[SandraTrader]

Below are some of the facts that affect the exchange rate the most:
· 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 Accоunt / Balance of Payments
· Government Debt
· Terms of Trade
· Political Stability & Performance
· Recession
· Speculation
Here you can find some general answers to the most common questions about Fоrеx.
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[Katrina]

The most important single factor for determining the value of money would be the basic rule of supply as well as demand. The more demand for a given currency, the more that currency or item is going to be of worth.

[maby81]

The economic environment, any major issues in the economy, or political effects that could pose an impact. The GDP also matters. Basically tehre are many factors that can have an impact on the exchange rates.

[FXOpen Trader]

The economic environment, any major issues in the economy, or political effects that could pose an impact. The GDP also matters. Basically tehre are many factors that can have an impact on the exchange rates.

There are many factors that will influence the currency Markets and we will have to understand that what is causing the movement in the United States dollar will not the same as the movement that will be there in the Euro.

[FXOpen Trader]

There are many factors that will influence the currency Markets and we will have to understand that what is causing the movement in the United States dollar will not the same as the movement that will be there in the Euro.

When we are trading in the Forex markets we have to think how we can get the required benefits from our trades.