What Factors Can Impact on the Forex Market?
As far as every Forex beginner knows the Forex financial market’s main purpose is to involve trading of different international currencies to get profits from the fluctuations which occur within the limits of the exchange rates between two international currencies which form a pair a trader chooses to buy or sell gaining money from such transactions. No wonder that Forex market moves so quickly and frequently because the changes within the exchange rates of certain currencies pairs happen all the time due to a number of reasons.
These reasons make trading at the Forex very inconsistent and vulnerable meaning you can whether earn a lot of money or lose everything at once simply because of unexpected changes which will affect the open trades and cause wrong decisions a trader can make. In a case you are going to stay in the profits than losing your money we advise you to read further in order to take into account certain outside the Forex market factors that influence on this financial marketplace no matter of your desire and a well planned trading strategy. So, what factors can make you whether a rich or a poor man at the Forex market?
1) Economic and Political News Reports
The most obvious factors which can impact on your trade positions are economic news concerning the Forex market on a global level. When a country which currency you chose as a base one in your currency pair releases the latest economical news these updates can whether negatively or positively impact on the exchange rates in general and on your open trades in particular. This factor should be foremost taken into account when you start planning your own Forex market trading strategy. The same concerns the latest political news a country releases.
2) The Housing Info
Such kind of information should be considered either. What does the housing information mean? For instance, each month the United States of America releases the info concerning houses which are under contract and which were sold. You should also find the information about how many houses were built every month. Using such a strong indicator you can figure out whether economy of a country is stable or not. If a country’s real estate market is ok, you can suppose that the economic condition of a country is good as well.
3) Interest Rates
Maybe you think them unimportant but in fact the worldwide interest rates provide a huge impact on the Forex market fluctuations because they influence foremost on the currency values. For example, in the USA the so-called Federal Reserve provides certain fixed interest rates on bank loans. And if they announce a change of the interest rates this fact impacts on the value currency (in this particular case – the USD). Consequently the changes in the value of a currency can cause changes of the Forex market exchangerates between different international currencies.
The most obvious factors which can impact on your trade positions are economic news concerning the Forex market on a global level. When a country which currency you chose as a base one in your currency pair releases the latest economical news these updates can whether negatively or positively impact on the exchange rates in general and on your open trades in particular. This factor should be foremost taken into account when you start planning your own Forex market trading strategy. The same concerns the latest political news a country releases.
2) The Housing Info
Such kind of information should be considered either. What does the housing information mean? For instance, each month the United States of America releases the info concerning houses which are under contract and which were sold. You should also find the information about how many houses were built every month. Using such a strong indicator you can figure out whether economy of a country is stable or not. If a country’s real estate market is ok, you can suppose that the economic condition of a country is good as well.3) Interest Rates
Maybe you think them unimportant but in fact the worldwide interest rates provide a huge impact on the Forex market fluctuations because they influence foremost on the currency values. For example, in the USA the so-called Federal Reserve provides certain fixed interest rates on bank loans. And if they announce a change of the interest rates this fact impacts on the value currency (in this particular case – the USD). Consequently the changes in the value of a currency can cause changes of the Forex market exchangerates between different international currencies.
To conclude, we should say that these are the most obvious and important factors which impact on the Forex market and the exchange rates fluctuations. Lots of other not so important factors but still impacting on the Forex should be considered as well.
