What economic factors affect the forex market?

Post date: Dec 29, 2020 7:1:25 PM

In the last few years, there has been a boom in the trading world, mainly because of foreign exchange or forex. While forex has been around for quite some time, it has only been recently integrated with recent technology to enable people worldwide to invest in foreign currencies through the internet. Unlike stocks trading, no middleman takes commissions. And because of trading apps, you can trade using your phone as long as you are connected to the internet. According to Scott Tominaga, a good forex trader will earn big whatever medium they use. What is crucial in forex is the stability and predictability of foreign currency. While a foreign currency's stability can only be determined through continuous monitoring, predicting when it would rise or dip is where the money's at. Thankfully, some noteworthy indicators affect the forex market.

For example, changes in individual currencies can be the result of local occurrences. This could be the weather, politics, breaking news, anything that might concern a large portion of the local economy. One good example is when North Korean leader Kim Jong-Un announced a peace treaty with South Korea in 2018. This increased the value of the won as soon as news broke. Another indicator that affects foreign exchange is economic performance. Scott Tominaga notes that there are specific times within the year when the currency is a lot stronger or is more competitive. For example, people who work abroad typically remit more money during the holiday season of December, giving countries that are hubs for foreign workers a bump on the forex charts. Scott Tominaga earned his degree in Business Finance from Arizona State University in 1988. An experienced professional in the hedge fund and financial services industry, he is skilled in middle and back office, accounting, compliance, and administrative functions within financial services firms. To unlock the secrets of finance, click here.