Overview

Currency values change almost every minute of the trading day as new information is released to the market. While some information might have no bearing on exchange rates, other types of information and data can be very important. For example, information relating to inflation, interest rates, government budget deficits, and international trade is collected and analyzed by traders because together they play a key role in determining the future strength of a country’s currency. This tutorial looks at how each of these factors affects FX markets, in addition to examining the impact of changes in investor sentiment and the occurrence of unforeseen events.

Objective

On completion of this tutorial, you will be able to:

- Identify and list the key macroeconomic factors that influence the value of a currency
- Describe the effect of sentiment, event risk, and financial resource shocks on the value of a currency

Content

Topic 1: Macroeconomic Influences
Topic 2: Sentiment
Topic 3: Event Risk
Topic 4: Economic & Financial Resources