What Affects The Foreign Exchange Markets?

As the UK claws its way out of from the worst and longest recession we have known for generations, Luke Trevail guides us through what factors have an effect on the foreign exchange markets, and when to try and judge when the best time to exchange funds is.

The last two years have taught us that volatility and risk are huge factors to the foreign exchange rates that are offered to people, as the value of the pound suffered heavily against all major currencies, some as much as 25%.

If you have a regular need to buy a currency, or you are embarking on a property purchase for your dream home in the sun, it’s worth knowing what the market looks like, and what can change it positively or negatively to try and maximise your gains and minimise the losses.

Economic fundamental news releases provide us with an indication behind how the country is favouring in everyday life, Consumer Confidence shows the foot flow on our high streets, and as such contributes to Retail Sales figures that are both released monthly.

Housing Price Indexes give us the a look into the house markets and Mortgage Approval data shows how many mortgages have been granted which contributes to house prices going up, which makes the country richer and should then strengthen the pound.

Basic economic and fundamental ideas underlie the forex markets and impact the movement of currencies. The most important thing that should be taken away from this article is that currencies and countries, like companies, are constantly changing in value based on fundamental factors such as economic growth and interest rates.

All of the news reports, economic data and political events that come out about a country are similar to news that comes out about a stock in that it is used by investors to gain an idea of value. This value changes over time due to many factors, including economic growth and financial strength. Fundamental traders look at all of this information to evaluate a country’s currency.

Working with a foreign exchange specialist like TORfx will allow you to be kept up to date with the latest market movements, and the reasons for any changes on a daily basis.

Foreign Exchange Market

TORfx will ensure that you receive a daily bulletin that avoids jargon and gets to the facts that will allow you to see what direction the market is taking and protect yourself against any adverse moves that may be forecast. You will have a direct line to an Account Manager who can provide you with live market analysis, all of which is free of charge and carries no obligation.

Getting a handle on currency fluctuations and the reasons behind them are vital, but with a seemingly ever-lasting list that some people have when buying currency TORfx do provide you with a real support mechanism who will do all that they can to give you a clear picture as to the current market price and the potential moves that we may see in the short, medium or longer term.

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