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What are the factors that affect the foreign exchange rate

In forexbonusrebate forex d forexdiscountbrokerscount brokers trad cashback forexg, the investors demand for a currency means its relative to the supply of another currency, that is, when the investor provides a currency also means that the investor will be for the demand for another currency foreign exchange trading is a currency exchange for another currency, the actual foreign exchange forexrebatesbrokers will be mainly determined by the supply and demand for the corresponding currency then affect the foreign exchange rate What are the factors that affect the demand and supply of a currency?  Purchasing power The ultimate purpose of foreign exchange is to buy something, the purchasing power of a foreign currency also determines the exchange rate of this foreign currency for other currencies Although in practice the exchange rate is not exactly equivalent to purchasing power, but the exchange rate and purchasing power is closely linked to the exchange rate always fluctuates around the purchasing power parity, the foreign exchange rate is subject to the purchasing power parity constraints International capital flows One of the most important short-term exchange rate trends is the international capital flows. One of the most important determinants of short-term exchange rate trends is the flow of international capital in the spread-oriented international capital flow, which directly affects the short-term foreign exchange rate changes, largely influencing the short-term exchange rate market trend Balance of Payments The balance of payments mainly includes import and export trade, labor export, remittances, tourism income, foreign investment, the use of foreign capital, etc., which is the monetary expression of the sum of a countrys foreign economic activities, is the result of a countrys economic extension of foreign exchange. The participants in the foreign exchange market are central banks, commercial banks, financial institutions, companies and individual customers, etc. The central bank is generally the manager of a countrys banks, not for profit, through the formulation and implementation of financial policies to regulate the exchange rate of the national currency and maintain the stability of the national financial order, in order to promote the development of the national economy often through the summit of large International financial or other ways to coordinate communication, to maintain the stability of the international financial system, when necessary, the central banks will join forces to intervene in the financial markets The above is a few of the factors that affect the foreign exchange rate provided by the majority of investment friends are which any investment will have a certain risk, investment in foreign exchange is no exception investors in foreign exchange investment should also be carried out to understand the analysis of various aspects, in order to seize the investment in foreign exchange profitability Opportunity  
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