Factors Affecting Exchange Rates
Similar to any other financial price, the price of an exchange rate is determined by the forces of demand and supply. The price of an exchange rate reflects many economic and non-economic factors. The most important factors are interest rates, inflation, growth, employment, and political risk.
News-Trading and Economic Indicators
Economic indicators are periodic economic statistics that provide an insight regarding the performance of an economy during a certain time-period. Any change in the macroeconomic conditions can trigger strong movements in the financial markets, and that means profit opportunities for currency traders.