What is it that makes the FOREX markets move up and down? The answer is that currency prices are affected by various Economic and Political conditions.
The biggest moves in the FOREX market are caused by Interest Rates, Inflation, and Political Stability. Moreover, sometimes the Governments of various countries participate in altering currency. Take part in the FOREX market.
By doing so it is possible to influence the value of their country’s currency. This is known as Central Bank intervention. It can be done by flooding the market with their domestic currency. Such action can result in lowering the currency’s value. Also, by doing the opposite (Buying). Will result in raising the domestic currency price.
Any, or a combination of these factors. As well as large lot size market orders. Will cause high volatility (unpredictable instability) in currency prices. However, The size and volume of the FOREX market make it impossible for anybody to move the market. Either for a short or long time period.
Another equally important factor causing FOREX market fluctuations is the News and Economic Data releases. These factors cause a direct outcome of the currency prices. Because News and Economic Data are always directly related to the economic market stability of the market.
This is a list of my favorite FOREX information sources. The sources on this list will provide you with useful information on FOREX, News, and upcoming Economic Data releases. Along with tools and market analysis to help you make trading decisions:
What’s really nice is you can have all of these sources also on your smartphone. I use RT, Bloomberg, and Investing.com on my Android devices. You can get the apps from the app store for free. I highly recommend it.
When it comes to trading the FOREX market. It is important to stay up to date. And to know what is happening economically and politically around the world.