The main factors affecting the Forex :

It is complicated to master the Forex market without knowing what factors can influence how the market will evolve at a specific date.

Here are some examples of the various elements that influence the forex market in one direction or the other. The most common influence on the daily market is undoubtedly that of the economic factors in a given country.

One factor that can really make a difference in how a national currency will perform is the current deficit in the country's economy. The sudden increases in the deficit will result in a fall in the price against other currencies, while when the government reduces the deficit, the currency recovers and rises its position against other currencies.
In parallel with the budget deficit, a trade deficit may also affect the exchange rate of currencies.

In other words, if a country does not make at least as much export of goods and services as it imports, a deficit occurs.
It is a clear economic indicator that will have a negative impact on the value of the country's currency.

Inflation or internal recession will also make a difference in the way a country's currency is valued.

Inflation in particular has the capacity to devalue the currency. For when a country enters a period of unbridled inflation, the attractiveness of the currency will diminish as it is perceived as less stable.

Since inflation reduces the domestic purchasing power of a country, it also affects the ability to buy goods and services from other countries.

When inflation is contained and periods of recession come, the value of the currency will rise again in relation to that of other countries.

As in all areas, the policy may also have an effect on exchange rates. A change in the negatively perceived government will very quickly lead to a devaluation of the country's currency.

This is also true when the incumbent government makes decisions perceived not to be in the best interests of the international community.

Similarly, an election that places people in the position of support for the international community can very quickly increase the value of the currency of that country, at least as long as these government agents maintain their favorable status. The basic principle is that the few factors that influence the trade and the overall financial picture of a country will make a huge difference on the price that are willing to pay buyers of the currency of a country on a given day.

Some factors may result in purely temporary, upward or downward developments, while others will have longer-term effects. One thing is for sure: the Forex market is never boring!

You can use the commercial forex information described above to optimize your earnings chances when you trade.