Thread by @ZoomStocks

With the US Fed & Major Central Banks increasing their interest rates across the globe, we all see notable fluctuations in forex prices before & after these major events. Forex is the most liquid market on the planet, let's discuss about what moves the currencies
#currencies
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Amongst many theories of forex pricing, the most basic & one of the earliest developed theories were the "Mint Par Theory" & "Purchasing Power Theory". Come let's explore these theories

#forex #forextrading #forexmarkets #currencies
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Now, let's move on to a very interesting concept that many market participants scrutinize, the #BigmacIndex. Further, let's discuss the "Balance of Payments Theory"

#forex #forextrading #forexmarkets #currencies
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After the "Gold Standard" was abolished, the most recent theory used in forex markets is the "Monetary Theory". Take a closer look here

#forex #forextrading #forexmarkets #currencies
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Now let's walk through some of the other factors that move the forex rates

#forex #forextrading #forexmarkets #currencies
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Inflation & interest rates, as we all know, have a resounding & deep impact on forex markets. Here are some major examples from across the world

#forex #forextrading #forexmarkets #currencies
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Trade balances, is the difference between exports & imports of a country with the rest of the world. This along with, Foreign Debt affects every domestic currency

#forex #forextrading #forexmarkets #currencies
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We hope you enjoyed this insight on forex markets. Thank You.

Sources: World Government Bonds, Economics Discussion, MBA Knol, US Debt Clock

#forex #forextrading #forexmarkets #currencies
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