Foreign currency exchange
rates (also known as
Forex), are influenced by an
array of political and
economic factors relating to
the difference in value of a
currency or economic region,
such as the euro (EUR) in
relation of another
country's or economic
region's currency, such as
the United States dollar
(USD).
The main factors affecting
currency exchange rates are
the terms of trade,
political stability and
overall economic performance
between the two countries or
regions. This also refers to
their economic growth (for
example GDP growth rate),
economic health, interest
rates, inflation rates and
balance of payments (i.e.
exports, imports, and
government debt).
The United States
Non-Farm Payrolls report
(NFP) is an example of a
major economic event
that is related to
Forex. The NFP typically
affects the following
currency exchange rates:
EUR/USD,
GBP/USD, and
USD/JPY.