The so-called market movers of the forex market are many and above all difficult to catalogue as they are different depending on the economic area of ​​reference that we are analysing. Let’s take a look at various elements that influence movement in the forex market.

Macroeconomic Data And Monetary Policy

The primary benchmark is the macro data, but also the monetary policy and the statements that come out of the Federal Reserve have a considerable weight.

Movements on American interest rates affect not only the value of the dollar but also the so-called carry trade currencies. Those with high yield tended to favour in phases of falling American interest rates.

Inflation and Unemployment Data

But alongside the monetary policy, American unemployment and inflation data are fundamental. The first represents an excellent measure of economic growth and, therefore, of monetary policy’s future evolution. In contrast, the level of consumer prices represents a factor taken into due consideration by central banks to adjust their level of internal interest rates accordingly. A country experiencing an increase in inflation is subject to a possible rate hike, which may initially strengthen the currency. However, should the inflation rate continue to show increasing dynamics, the value of the money will tend to weaken to compensate for the lower competitiveness of the most expensive domestic goods in terms of price.

As we said at the beginning, each country has its market movers. This makes it necessary and mandatory always to have an economic calendar available that brokers or, in any case, specialized forex sites can quickly provide to any operator.

Economic news and updates

Financial news or statements from prominent figures come out of the world every day, but not all of this information is of equal importance in moving the value of a currency.

For example, if an emerging country sees its currency reserves under pressure or sees it’s budget or trade deficit widen, it will focus on the weak points of the economy in the following months. Some brokers adopt measures to prevent lossess when they anticipate uunfavourable movement in the currency, hedging is (hedging strategy คือ which is the term in Thai) one of such measures.