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What is the Forex Market? When it comes to the economy

mosakr38

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What is the Forex Market?

When it comes to the economy, the bid and ask price drive market prices. This principle also applies to the foreign exchange market.
When the currency is bought, the demand for it increases, which pushes the price higher. Likewise, every time a currency is sold, the supply increases, causing the price to fall. The effect of each buying and selling process in the Forex market is directly proportional to the transaction size of each transaction.
Most of the news and economic events that happen around the world have an impact on the markets. Therefore, understanding what drives the price is your key to becoming a good Forex trader.

What are the factors affecting Forex?

The forex market that reflects the prices of currency pairs is affected by several factors:
interest rates
Inflation rates
Political and economic news
natural disasters
Gross Domestic Product (GDP)
Supply and demand for the primary instrument
You can always check the latest news from the economic calendar, which displays the most important news for the day and the week and the extent of its impact on the associated financial instrument
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