Because the forex market is made up of currencies from across the globe, predicting exchange
rates is difficult as there are a number of factors that constantly move prices. The main
driving factors for these moves are central banks, news reports and market sentiments.
Understanding how each of these operate will help you on your trading journey.
It’s also important to remember that prices move up and down based on supply and demand,
just like any other financial market. As a forex trader, you’re likely to either choose to put
your money into an economy that has strong growth potential or short a market.