FACTORS THAT AFFECT FOREX

The most important and intricate part of fundamental analysis is to recognise various factors that affect currency trends. At FOREX market the instantaneous price changes may lead as to an opportunity to get high profit in a short period as to the significant loss of funds.

Therefore, to identify the direction of price changes correctly and perform an objective assessment of these and other situations is the right way to become a successful trader at FOREX market. Fundamental analysis helps to analyze different news about financial and economic situations in the world, as well as situations happening in the political and economic life of different countries and all over the world that may affect the development of the currency market.

1. Economic growth indicators (The GDP, industrial production volume);

2. Current trade balance;

3. The frequency of change of the money supply;

4. The inflation rate and expected inflation;

5. Interest rates;

6. The solvency of a country and reliability level of national currency in the international markets;

7. The volume of speculative operations;

8. The development level of other sectors in the international financial markets.