Factors that Affect the Market

The worldwide currency market is dominated by trading between governments, major banks, and major corporations. At any given moment, prices are affected by news, economic and political conditions, and the actions-such as large market orders-of the major players.

While no exhaustive list of market-influencing factors can be drawn, eco-political fundamentals, including GDP, inflation, stability, trade balance, etc., are used to assess the value of a currency. Major news shifts the perception of currency value, and major orders-including orders by government Central Banks ("interventions") meant to increase or decrease the value of their currency-affect the market. The live market is constantly affected by a combination of these and other factors.