What causes price moves in the forex market?


Posted July 30, 2020 by Shaiq1

Questions such as, ‘what causes currency prices to move?’, ‘who decides whether one currency should appreciate in value or depreciate?’

 
Forex market and its prices are a mystery to most new traders. Questions such as, ‘what causes currency prices to move?’, ‘who decides whether one currency should appreciate in value or depreciate?’ are common on forex trading forums. It is to answer these very questions that this piece is being written. So let’s get to it. Factors affecting currency value There is no straight forward answer to this question. We need to address it at two levels if we’re going to get to the root of it. First level of factors The first level is the body that analyzes the market and comes to the conclusion that currency A should increase in value. This body is comprised of all the participants of the foreign exchange business. Everyone who is participating in the market in one way or the other contributes to the eventual direction the market takes. After all, in forex, the traders are the market.
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Issued By Shaiq1
Country Australia
Categories Accounting , Banking , Blogging
Tags price , market , forex , trading
Last Updated July 30, 2020