The most important factors that affect the market are:
• Interest rates: The sum charged, calculated as a percentage of the principal, for the use of assets by a lender to a borrower.
• Economic and political conditions How the government intervenes in the economy is linked to political factors. Political considerations, in particular, include areas such as tax policy, labor law , environmental law, trade controls, tariffs and political stability. Economic growth, exchange rates , inflation rates and interest rates are economic influences.
• Inflation In the economy, there is a general rise in the prices of goods and services for a certain period of time.
• News and public opinion
Who Works in The Forex Market?
• Central banks. an institution that manages the currency and monetary policy of a state or formal monetary union, and oversees their commercial banking system
• Commercial banks. refers to a financial institution that accepts deposits, offers checking account services, makes various loans, and offers basic financial products like certificates of deposit (CDs) and savings accounts to individuals and small businesses
• Brokerage houses and financial companies. brokerage company’s main duty is to act as a middleman that connects buyers and sellers to facilitate a transaction
• Commercial companies. a company that is organized to make a profit: American law forbids commercial companies from owning banks
• Retail brokers. typically facilitate equity and debt trades for their clients, including stocks and bonds. They might sell additional securities and financial products such as mutual funds, limited partnerships, options and real estate investment trusts.
• Private individual (investors and speculators). are acting only for themselves, and are not representing any group, company, or organization