Why does foreign exchange fluctuate and how does it affect the fluctuation of exchange rates?

**Contains all factors.

What you see is the change and trend of the exchange rate, every time a currency appreciates, then the other currencies relative to this currency will depreciate accordingly, then the exchange rate of this currency against another currency will start to fluctuate.

Fundamentally, on the basis of the principle of supply and demand in the economic market, the behavior of all stakeholders affects the fluctuation of the exchange rate.

Supply and demand determine that the relationship between supply and demand is an intrinsic iron rule of the market

1. If there are many people who buy, the ** will rise.

2. If there are many people who sell, ** will fall.

The relationship between supply and demand in the market affects the movement of exchange rates.

How volatile is the RMB exchange rate? Don't be afraid, the central bank will deal with it calmly!

Exchange rate fluctuations must be caused by the great influence of society, and there are some ** and the like, which have a very large impact on interest rates and exchange rates.

Changes in exchange rates are influenced by the following factors:

1. Market trading hours. If there is an overlapping time for market transactions, then the spread of the exchange rate will narrow.

2. The currency of the transaction. The US dollar, the British pound, the euro, and the Japanese yen are the most traded currencies in the world. Trades between them will result in smaller ** and ask spreads. Others, such as Australian dollars, Thai baht, etc., will have a large spread.

3. Trading volume. The higher the volume, the wider the spread. Because the greater the risk taken by the dealer.

4. The monetary and fiscal policies of various countries will also affect the changes in exchange rates.

Exchange rate fluctuations are mainly influenced by the economy.

Yes, and I think you've probably learned that there are opening and closing schedules for all continents. In fact, the opening and closing of the market here is not really a process from opening to closing, and the foreign exchange and ** market are 24 hours a day.

It's because people on all continents have a habit of looking at finance and economics during the daytime local time. For example, when the American market opens at 9 p.m., there will be a relative market volatility in the market at 9:00 p.m.

For novices, we remind novices to pay attention to this period, not to be too heavy, and to help them grasp the risk.

Some small experiences, novices can understand and understand that maybe they can avoid detours.

1.The most intense trading hours for foreign exchange trading are generally from 3 p.m. to 5 p.m. and from 7 p.m. to 12 p.m.

2.It is best not to hold a position overnight, and if you have to hold a position, be sure to set a stop-loss price and a take-profit price.

3.The Stop Loss and Take Profit prices can be set on the 5th and 20th days.

4.Don't trust your instincts too much, but watch more international news, and don't look at what others say, but what is happening in the market.

5.Don't go full at any time.

6.To judge the general trend, follow the market accurately, be cautious when doing swings, and don't lose big because of small things.

7.If it doesn't rise when it should rise, it is resolutely bearish, and if it doesn't fall when it should fall, it is bullish.

8.Foreign exchange and ** are both T+0 mechanisms, to maximize the mobility of this mechanism, grasp the opportunity, decisively enter and exit the market, and overcome greed (unwilling to sell) and fear (dare not buy).

9.Finally, of course, it is to learn more investment knowledge, enrich yourself, and make a good summary every day.

10。Learn about the more well-known platforms in the world, regulated by the FSA and NFA. Spot ** leverage can choose from 100 to 400, the leverage is large, and it is easy to do some.

11.Novices are advised to apply for a free simulation first, simulate learning first, summarize the simulation experience, and record daily gains and losses. Should help.

In the evening, the foreign exchange market in New York opened, and Europe also opened, and there was an overlapping time, so the flow of funds was large, and the volatility was large

Forex is traded 24 hours a day, but there is also a distinction between active and dull trading. The active hours of the foreign exchange market are mainly the time when the European and American markets are open. The European market opens after 3 p.m. Beijing time, and the American market opens at around 21 o'clock in local time, so the evening is a relatively large period of foreign exchange fluctuations.

Don't you know ... There is also economic policy, and the announcement of economic fundamentals is also after 3 p.m.

What foreigners play, our evenings are their daytime work and trading hours, so they vary a lot.

To put it simply, it's a matter of jet lag, and we're off at night, and people in Europe and America haven't gotten off work yet, because the market is very busy, so it's relatively volatile at night.

The opening time is different, the day in Europe and the United States is basically our afternoon or evening to the early morning, while the amount of funds in Europe and the United States is large, and the amount of funds in Asia is small, so the situation you said appears.

The volatility is due to the high trading volume.

That's basically why you understand it.

Reference: The main trading hours for Forex.

You are such an interesting person, forex is traded 24 hours a day, it does not fluctuate, how can you make money.

The foreign exchange market is a global market, which fluctuates every day, and because the earth is round, opaque, day and night, plus the influence of economic factors in various countries, foreign exchange fluctuations are common.

The landlord is a very interesting person.

Of course, forex is constantly fluctuating.

Otherwise, how to make money by speculating in foreign exchange.

Speculation in foreign exchange is based on the fluctuation of commodities, and what we earn is the difference.

The reasons for the fluctuation are:

Foreign exchange is the currency paid when commodities are traded between countries.

Taking the US dollar as an example, the US dollar is basically the currency of income and expenditure of various countries in the international market, with the internationalization of the market and the intensification of commodity trading, foreign exchange ** is naturally constantly changing.

The selling price and the buying price are not issued from the bank at the same time, but there is a time difference, so ** is not a pair, but one by one. So, why do spreads sometimes fluctuate so much? Let's take an example, the Federal Reserve announced an interest rate hike, at this time everyone knows that the interest rate of the dollar is going to rise, and at this time the long dollar will definitely make a lot of money, but this is not the focus of our concern, what we are concerned about is why the spread will become very large at this time?

After the interest rate hike, the dollar exchange rate will often increase, the dollar loans will decrease, and the dollar deposits will be increased, so there will be a situation where the dollar is more in and less out. At this time, there will be a lot of people who tend to be long the dollar, and the buying price of the dollar will change very drastically, and then the selling price will change relatively less drastically. The deficit of the two ** changes has formed a sudden change in the spread that everyone sees on the disk.

Often these financial events will also affect the changes in the swap, and we will introduce the changes in the swap in the following article.

The biggest impact of foreign exchange fluctuations is still imports and exports!

For example, the original US dollar to RMB is 1:8, that is, 1 US dollar can be exchanged for 8 yuan, but now the RMB has appreciated to 1:6, that is, one US dollar can be exchanged for 6 yuan!

So, things denominated in US dollars, such as A goods, China's export to the United States is 1 dollar, that is to say, in the past, we sold it to us for 1 dollar, and we exchanged it for 8 RMB, but now it is only 6 RMB, the problem is that the cost of our exporters has not changed, and we have earned 2 RMB less....

That's the immediate impact!

If our exporter, who used to export A goods, one piece, ** one dollar, to get 8 RMB, his profit is 1 RMB, then now I export A goods, ** unchanged is one dollar, only to exchange RMB 6 RMB, that is, to lose 1 RMB, we have to raise the price, otherwise we will lose money, so we have to raise the price to the US dollar, we can make a little bit.

With the price increase, our international competition is not as good as before

Therefore, the exchange rate has a very great impact on a country's exports, and the more a country's currency depreciates, the more beneficial it is to its own country's exports, and the more unprofitable it is, so the United States pressures China to appreciate the reason for the exchange rate!

There are so many influences on this that I can't say all at once

(1) Balance of payments. Under the indirect pricing method: when a country's external current account balance is in surplus, in the foreign exchange market, it is manifested that the foreign exchange (currency) is greater than the demand, so the exchange rate of the national currency rises and the exchange rate of the foreign currency falls; On the contrary, when a country's international expenditure is greater than its income, the country has a balance of payments deficit, and in the foreign exchange market, it is expressed as the ** of foreign exchange (currency) is less than the demand, so the exchange rate of the national currency decreases and the exchange rate of the foreign currency rises.

ii) Differences in inflation rates. When a country has inflation, the cost of its commodities increases, and the export commodities are inevitably expressed in foreign currency, the competitiveness of the commodity in the international market will be weakened, resulting in a decrease in exports, and at the same time improving the competitiveness of foreign goods in the domestic market, resulting in an increase in imports, thereby changing the current account balance. In addition, inflation rate differentials can affect capital and financial account payments by influencing people's expectations of the exchange rate.

Conversely, the currency exchange rate of countries with low relative inflation rates tends to appreciate.

3) Interest rate differentials. When the interest rate level of one country is higher than that of other countries, it means that the cost of using funds in the national currency increases, and thus the national currency in the foreign exchange market is relatively reduced; On the other hand, it also said that the income from the abandonment of the use of funds has risen, and the international short-term capital has tended to be profitable, and the foreign exchange market has increased relatively well. Changes in the supply and demand of domestic and foreign currency funds lead to an increase in the exchange rate of the national currency.

Conversely, when the interest rate of one country is lower than that of other countries, changes in the supply and demand of domestic and foreign currency funds in the foreign exchange market will reduce the exchange rate of the national currency.

4) Fiscal and monetary policies. Generally speaking, the huge fiscal deficit and inflation caused by expansionary fiscal and monetary policies will depreciate the national currency. Contractionary fiscal and monetary policies will reduce fiscal spending, stabilize inflation, and increase the value of the national currency.

v) Exchange rate expectations. Psychological expectations of exchange rates are increasingly becoming one of the important factors influencing short-term exchange rate movements, but psychological factors can only arise and play a role under certain market conditions.

6) The power of foreign exchange speculation. Speculators, in anticipation of the appreciation of a certain currency, will buy a large number of that currency, resulting in an increase in the exchange rate of that currency; Conversely, speculators who anticipate the depreciation of a currency will sell it in large quantities, resulting in an instant** in the exchange rate of that currency. Speculation is an important force for short-term fluctuations in the foreign exchange market.

vii) ** market intervention.

8) Economic growth rate. Generally speaking, a high economic growth rate is not conducive to the domestic currency in the foreign exchange market in the short term, but in the long run, it strongly supports the strong momentum of the local currency.

ix) Macroeconomic policies. The impact of macroeconomic policies on exchange rates is mainly reflected in the combination of loose and tight fiscal policies and monetary policies of various countries.

First, the impact of exchange rate changes on economic development:

1) The impact of exchange rate changes on a country's domestic economy.

The impact of exchange rate changes on a country's domestic economy is mainly manifested in the impact on prices, which will further exacerbate or slow down inflation in a country, thereby affecting all sectors of the national economy.

and 2) the impact of exchange rate changes on a country's capital flows.

In the long run, in general, when the foreign currency expressed in the national currency ****, it means the depreciation of the national currency, in order to prevent the loss of the depreciation of the national currency, often flee abroad, especially the international short-term capital or other investments in the domestic bank, will also be transferred to other countries to prevent losses.

3) The impact of exchange rate changes on a country's external **.

If the foreign currency expressed in the national currency ****, and the domestic price does not change or changes very little, the value of the foreign currency rises, the purchasing power of foreign businessmen to purchase domestic goods and services increases, and the demand for domestic commodity exports increases, and the domestic commodity exports can be expanded. Therefore, the value of the national currency is **, which has the effect of promoting domestic exports.

4) The impact of exchange rate changes on a country's tourism industry.

Under the same conditions, the value of the national currency declines, resulting in the increase in the purchasing power of foreign currency, and for foreign tourists, the domestic goods and services appear to be cheaper, which has a certain "solicitation" effect, which can promote the development of a country's tourism industry.

5) Exchange rate changes have different degrees of impact on a country's reserves and national income.

It has no impact on the average person, if you invest in the foreign exchange market, foreign exchange fluctuations mean that you have room for profit.

Market volatility is influenced by many factors: politics, economics, war.

The question is not clearly written. Details point:I don't know if the main thing you're asking is the impact of foreign exchange fluctuations on currencies, the impact on countries, the impact on the economy, or what factors affect fluctuations.

Political factors: Political factors and geopolitical conflicts can have a drastic impact on the movement of currencies. For example, the turmoil in the Middle East will have an impact on the international market, which in turn will affect Canada, a major exporter on the other side of the world, so the Canadian dollar (CAD) will fluctuate.

Economic Situation: There is no doubt that the state of a country's economic development has a direct impact on the movement of its currency, and investors need to pay attention to the news about a country's economic development for a long time. We know that volatility in the forex market happens in a flash, so for forex investors, it is important to keep an eye on financial news.

Natural disasters: The forex market is closely linked to natural variability. Typhoons and droughts and floods can have a significant impact on the volatility of the foreign exchange market.

Some extreme weather is difficult to **, which often affects the economy of a country, especially some countries that mainly export agricultural products will suffer a huge impact.

Industry news: There are more than 100 currencies in the world, but there are a total of eight of the most commonly traded forex currencies. These eight currencies make up a variety of trading pairs, and according to statistics, about 90% of traders use the US dollar as their trading tool.

The value of the U.S. dollar is affected by major events around the world.

In addition to global financial news, forex traders also need to pay attention to the weekly financial reports released by the relevant departments. These financial reports are an important basis for investors to conduct technical analysis, and the most important reporting indicators include: inflation rate, interest rate, industrial output, retail sales, unemployment rate, ** balance, etc.

The foreign exchange market is affected by many factors, resulting in corresponding changes. Although the self-regulation of the market has always occupied the main position, it is more conducive to judging the market trend by paying more attention to these issues.

Therefore, it takes a lot of energy to do well in the foreign exchange market. It is recommended that foreign exchange novices should first go to a formal foreign exchange platform (such as TRA and FXCM) to apply for a demo account. In this way, you can avoid incurring huge losses in the first place, or you can also say tuition fees.