Question: What drives the Forex market? Why market prices change every second?
Economic stability is the single most important driver for the Forex marketplace.
A positive economic outlook is a key indicator behind currency strength.
However, there are a number of determining factors behind a strong economy, they include:
- Interest Rates
- Employment Statistics
- Balance of Trade
- Political Stability
Analyses which focusing on such factors are called as “Fundamental Analysis”.
On the other hand, analyses focusing on price movement are called “Technical Analysis”.
