What are the main factors affecting the fluctuation of the foreign exchange rate

  • 2023/2/26 15:24:58
  • read: 5
  • forextradingsessiontimes

In the forextradingmarket forex trading session times market, every day a variety of information filled our brains how we should determine which information is useful to us, forextradingtime those information is not useful to us? This requires us to understand the trend of foreign exchange cashback forex fluctuations are mainly affected by what factors only clear this point, and then we look at the news will be able to pick out the focus to figure out the trend of foreign exchange rate fluctuations are mainly affected by what factors, we need to understand the foreign exchange rate is mainly related to what in general, there are the following aspects of the content: 1) monetary policy central bank that the effective intervention in the foreign exchange market and the governments When the monetary policy is consistent, the central banks participation in the foreign exchange market will affect other participants in the foreign exchange rate market for the governments monetary policy for the exchange rate impact judgment and for the future policy expectations will also have an impact on the exchange rate so the central bank sector of the governments monetary policy on the foreign exchange rate is greater 2) political situation political situation is stable or not related to the stability of the currency or not, in a general sense, a countrys The more stable the political situation, the more stable the currency of the country, and vice versa, the more unstable it can be seen that politics affects the economy, the economy can also affect politics 3) Balance of Payments The so-called balance of payments, simply put, is the import and export of goods, services and the import and export of capital balance of payments, if exports are greater than imports, capital inflows, which means that the international market demand for the countrys currency increased, the local currency will rise, and vice versa. If imports are greater than exports and capital flows out, the demand for the countrys currency in the international market will fall and the local currency will depreciate. The balance of payments of a country reflects the countrys economic status in the international arena and also affects the countrys macro and microeconomic operations. The impact of the balance of payments is ultimately the impact of the supply and demand of foreign exchange on the exchange rate, so that the balance of payments is the most direct factor affecting the exchange rate4 Under mild inflation, higher interest rates will attract foreign capital inflows and at the same time suppress domestic demand, reducing imports and making the local currency higher. Political, economic events, analysis, understanding of the exchange rate have an impact on 6) speculation speculation will lead to the flow of different currencies, which has an impact on the exchange rate fluctuations are often affected by a combination of factors, a single factor can not determine the overall trend of the foreign exchange market as investors can only be based on the general trend of the market to make a judgment which requires investors must pay more attention to some of the international Major events, because these events may have a certain impact on the exchange rate, in order to avoid causing losses to yourself, investors should not be careless, pay attention to the analysis of the fundamentals of foreign exchange, pay attention to the collation and digestion of comprehensive information

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