The 6 Factors That Influence Exchange Rates
Every day, close to $5 trillion of currency gets exchanged on global markets.
It’s a market that’s running continuously for 24 hours per weekday around the world – and transactions can happen using different mechanisms, such as spot transactions, outright forwards, foreign exchange swaps, currency swaps, or the use of other types of options.
But what fuels changes in this extremely liquid and busy market, and why are the exchange rates between countries constantly in flux?
Key Market Factors
Today’s infographic comes to us from Hiwayfx and it highlights six of the major factors that can impact currency exchange rates.