Whats Affects The Forex Market

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The Forex market has high liquidity because of the large demand and supply ratio. Traders conduct transactions based on financial and general events as well as technical analysis. When a currency has high demand, its value will naturally rise against other currencies, and vice versa.

 

Financial events are frequent statements by countries, central banks or other financial institutions, on topics such as unemployment figures, production figures and so on. A fall in the unemployment figures of a country may mean that the economy is strong and this can lead to an increase in the local currency. If this is a sharp decline, it can also affect other currencies. Before the event occurs, traders speculate on its contents, and open positions based on these speculations. All events can be viewed and followed on the Forex Calendar