What are the factors that affect the daily currency exchange rates?

Will Forex is a complex mechanism based on a number of different factors that may affect the success or failure of the circulation of certain. Will highlight in this article some of the factors that may affect the currency exchange rate daily. If you are new to Forex, you should not do any additional step before the understanding of these basic things about forex trading. If you are practicing trading for some time, perhaps you should remind yourself in the market effects, which affect directly or indirectly on the currency exchange rates, in case I missed the one.

Differences in market
Many consider these deaths as the Forex market traders are smelted in which all major international developments, due to the absence of any other market responds to these developments is the largest and fastest of the Forex market. In addition, Forex offers a number of differences from other markets, such as the stock market and commodities. For example, the Forex market is held in the central area you view the daily exchange rates, Instead, all transactions occur through either a telephone or office networks or e-banking market.

Sector speculation
You will discover that there are two main reasons produce large returns in Forex day up to about $ 3 billion a day. Sector, speculation is responsible for about 95% of transactions in Forex, which is for profit only. This element, which includes investment banks and large banks, companies and individuals, is revealed to the artificial rates using the daily exchange rates for the production of profits from price movements.

As a result, you may be amazed when you discover that the majority of trading in the Forex is speculative in nature only. In fact, the needs of the currency converter in the States and the business, producing only a small percentage of the total activity of the market and their impact on exchange rates.

Foreign sector
Foreign sector is responsible for the remaining 5% of Forex transactions, and the result is a global business to sell and purchase materials and products abroad, as well as the needs of the currency converter. This section of traders: import and export companies, governments and other investors who need to exchange transactions.

Performance of the work of these organizations directly affected by the oscillating movement of domestic currencies, foreign currencies, or works that are used daily currency exchange rates.

Current economic events
Economic factors include economic conditions and policy making. For example, it is possible to affect a government directly in the interest rate offered by the central bank through the provision of new financial policies. May be the major impacts of these things on their currencies, as investors baptized to follow the high yielding currencies. If the announcement of such a thing, you can monitor the effects on the currency related to the follow through Forex fundamental analysis.

Political influences
If what happened there is political instability or revolution in a country, it will have a significant negative impact on the economy of that country and its currency, and an example of the revolutions that occur in the Middle East, particularly the January 25 revolution in Egypt. The result, more than developments of aversion to risk, and you will certainly notice the depreciation of the currency against other currencies affected by studying the daily currency exchange rates.