The forex market is driven by economic factors, that affect the value and strength of the national currency. The economic outlook for a country has the greatest impact on the value of its currency. Knowledge of monitoring factors and metrics will help you keep pace in the competitive and fast-paced forex world.
The exchange rate represents the numerical ratio of one currency to another. The term is widely used in the foreign exchange market “currency pairs”. Depending on the duration of the foreign exchange transactions, there are two types of exchange rates – spot rate and forward rate.
With its daily exchange of conversion operations, FOREX (Foreign Exchange abbr.) is the largest and most liquid market in the world. Commercial and central banks, currency exchanges, investment funds, intermediaries, brokers and individuals exchange more than $5 trillion every day.