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8 Economic Factors That Affect The Forex Market | Valiant Markets

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8 Economic Factors That Affect The Forex Market | Valiant Markets

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  1. 8 ECONOMIC FACTORS THAT AFFECT THE FOREX MARKET Valiant Markets

  2. Introduction The trade industry has developed throughout time along with technological innovation. The trading markets are witnessing a massive increase in new sorts of trading instruments utilized for profit trading, all of which offer precise recommendations, pointers, and advice. Then why not? Who wouldn’t desire to become a millionaire quickly? It is advised that you contact Valiant Markets if you are attempting your luck for the first time in the trading markets. This seasoned team of stock specialists has years of experience dealing with stocks, currency, commodities, etc. Since the organization has been engaged in trade ventures for some time, it has developed a reputation for providing trustworthy and valued trading services to its clients and customers around the world. Let's discuss the 8 economic factors that affect the forex market!

  3. 8 Economic Factors 01 Inflation World events Interest rates 02 06 Government Debts Speculation 03 07 04 08 Recession Political performance in the country and stability Capital and Trade flows 05

  4. Inflation This is a measurement of price level increases or declines over time. Because there are so many products and services accessible in a given nation, pricing changes are typically tracked across a collection of these products and services. Price increases are a sign of rising inflation, which can lead to a decline in the worth of a nation’s currency.

  5. Interest rates This gauges price level growth or declines over a certain time frame. Due to the vast array of goods and services that may be found in a given nation, pricing changes are frequently tracked by grouping similar items and services increases are a sign of rising inflation, which can cause the value of the currency to fall. together. Price

  6. Government Debts The public or national debt is referred to as “government debt” and is owned by the federal government. A nation with public debt is less likely to attract foreign investment, which inflation. If the market anticipates a country’s government will incur debt, foreign investors will sell their bonds on the open market. Consequently, the value of its exchange rate will decline. could result in

  7. Political performance in the country and stability The performance of a country can affect the value of its currency. Because those countries are more desirable to international investors, investment shifts away from those with more political and economic stability and toward those with a reduced risk of political turmoil. As foreign investment rises, the value of the nation’s domestic currency rises. A country with sound financial and trade policies will not tolerate currency value uncertainty. Exchange rates, however, might fall in a country where political unrest is common. political environment and economic

  8. Capital and Trade flows Money flows that result from specific exchanges between nations can have a big impact on currency prices. The value of the currency tends to fall as imports outpace exports. Increased investment may have the opposite effect on a nation.

  9. World events Geopolitical developments, crises, and upcoming elections can all influence how strong a currency is perceived to be based on how they impact a nation’s stability. A favorable event may investors, and as foreign money increases, so does the currency’s value. A nation under crisis may experience a decline in confidence and the value of its currency. draw foreign

  10. Speculation This investors will demand more of a currency if there is speculation that its rate may rise, which drives up the price even more. For the opposing side, the same is true. aspect isn’t quantifiable. Other

  11. Recession In a recession, interest rates are expected to fall, which will make it more difficult for the country to entice foreign investment. As a result, when measured against those of other countries, its currency loses value, which reduces the exchange rate.

  12. Contact Us +44 203 318-8141 support@valiantmarkets.com www.valiantmarkets.com

  13. THANK YOU FOR YOUR ATTENTION

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