The forex market is highly profitable. There is no profit or loss because you can buy or sell currency anytime you want. There is no limit to currency exchange unlike stocks. The primary drivers of this market are supply and demand. The other factors that influence the forex market system [ระบบเทรด forex, which is the term in Thai] are:
Central Banks of the Country
The money supply in your country is controlled by the central bank. This supply has a significant effect on the currency’s value. The more money is supplied to the country, the value of money decreases and vice versa.
Media Also Affects Forex Market
If the media creates hype for something, the value increases overnight. Similarly, if a piece of positive news about currency hits media, investments are encouraged and the value of money rises. This keeps the forex market inflow.
The Market’s Reaction
Markets respond to the hype or news also matters for the forex market system. If the news is positive, the market is likely to respo0nd positively as well. Traders will know a specific direction and their exchange is made accordingly. These phenomena are also known as market sentiment.
Country’s Economic Data is Influential
A country’s economic data is a picture of how the economy is performing. If the data is positive, the money supply is affected as well as the forex trade. It encourages investment and lowers interest rates. Foreign exchange is greatly influenced. Investors also focus on the credit ratings present in the economic data. Lower credit rating means lesser investments and reduced forex trade.
Certain factors affect the forex trade like economic data and media. If the country keeps a good hold on these influential factors, the forex trade system will be less risky and a good market opportunity.