What Affects Currency Rates?

The forex market determines the value of one currency in relation to another, so data on at least two major international economies is absorbed simultaneously. Add half a dozen or more other national economies, and you’ll have a great deal of information flowing through the market.
Currency fundamentals and technical analyzes are essential information inputs to establish current prices.

The basics that determine currency rates
Fundamentals is a wide range of news and information that reflects the macroeconomic and political fortunes of the countries whose currencies are traded. Most of the time, when you hear someone talking about currency fundamentals, they refer to economic fundamentals, which are based on reports of economic data, interest rate levels, monetary policy, international trade flows, and international investment flows.
There are also political and geopolitical underpinnings. An essential component of the value of any currency is the belief or confidence that the market places in the value of the currency. If political events, such as an election or scandal, are viewed as undermining confidence in a country’s leadership, the value of its currency may be negatively affected.

Gathering and interpreting all this information is just part of a currency trader’s daily routine.

Technologies that analyze market trends
Technicians refers to technical analysis, a form of market analysis that often includes chart analysis, trend line analysis, and mathematical studies of price behavior, such as momentum or moving averages.
Technical analysis is especially important in the forex market because of the amount of fundamental information that reaches the market at any time. Currency traders regularly apply various forms of technical analysis to define and refine their trading strategies, with many people trading based on technical indicators alone.