1-Economic Factors
Economic factors include ;
- Economic policy which is issued by government agencies and CB(Central Banks)
- Economic conditions which denoted through economic reports and other economic indicators
Some other economic factors:
-Government budget deficits or redundancy
-Balance of trade levels and trends
-Inflation levels and trends
-Economic growth and health
-Productivity of an economy
2-Political Conditions
International, internal and regional political conditions and events may have a deep effect on Forex market.
All exchange rates are sensible to political inconsistency and expectations about the new ruling party. Political turn of the dice and instability can have a negative impact on a nation’s economy. For example, destabilization of coalition governments in Pakistan and Thailand can negatively affect the value of their currencies. Similarly, in a country experiencing financial difficulties, the rise of a political faction that is perceived to be fiscally responsible can have the opposite effect. Also, events in one country in a region may spur positive or negative interest in a neighboring country and, in the process, affect its currency.
3-Market Psychology
Market psychology and trader perceptions influence the foreign exchange market in a variety of ways
-Flights to quality
-Long term trends
-Buy the rumor, sell the fact
-Economic numbers
-Technical trading considerations
Economic factors include ;
- Economic policy which is issued by government agencies and CB(Central Banks)
- Economic conditions which denoted through economic reports and other economic indicators
Some other economic factors:
-Government budget deficits or redundancy
-Balance of trade levels and trends
-Inflation levels and trends
-Economic growth and health
-Productivity of an economy
2-Political Conditions
International, internal and regional political conditions and events may have a deep effect on Forex market.
All exchange rates are sensible to political inconsistency and expectations about the new ruling party. Political turn of the dice and instability can have a negative impact on a nation’s economy. For example, destabilization of coalition governments in Pakistan and Thailand can negatively affect the value of their currencies. Similarly, in a country experiencing financial difficulties, the rise of a political faction that is perceived to be fiscally responsible can have the opposite effect. Also, events in one country in a region may spur positive or negative interest in a neighboring country and, in the process, affect its currency.
3-Market Psychology
Market psychology and trader perceptions influence the foreign exchange market in a variety of ways
-Flights to quality
-Long term trends
-Buy the rumor, sell the fact
-Economic numbers
-Technical trading considerations
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