Things That Move Rates of Currency

In the market of currency, traders purchase and sell the currencies with a hope of earning a gain when value of currencies change in your favor, whether from the news regarding trading market or events taking place in different parts of the world. Currencies, like another commodity which could be purchased or sold are subjected to laws of demand and supply. When the demand falls or individual’s wants to hold a currency of the nation, value will automatically fall.
What are the factors that affect demand and supply for currency?
Economic Growth
Most of the investors want to ensure that they invest in the solid budget that is attaining a steady growth. Currency dealers, searching for accessing growth of economy of a nation will see unemployment, GDP data and trade.
Interest Rates
Finance tends to follow the rate of interest. If the rate of interest increases, cash will move into the nation from different parts of the world as most of the investors seek capitalizing high returns. For determining whether the rate of interest will increase or decrease, most of the investors pay importance to the economic inflation pointers and speeches by the influential figures. Generally, timing of the rate of interest moves are called in advance. They took place after daily scheduled meetings by FED, BOE, BOJ, ECB and other banks.
Political Steadiness
Election turmoil, variations of the government, high rate of unemployment and worldwide conflict makes the investors cautious in putting the money in a nation. Investors will search for important news that comes from a nation.