Fluctuations in FOREX Trading

Friday, March 19, 2010

Foreign exchange market is the most volatile market of the world s’ other markets. It has great risk of fluctuations in currency prices due to economical and political factors of the world. Currency fluctuations are the constant changes between the virtual values of the currency of one country as compared to different currencies of other countries. Currency fluctuation occurs every day and influence the rate of exchange between various currencies. Investors keep a deep and close look on Fluctuations in currency exchange in order to get a profit from their investments.

Some major factors which cause fluctuations in foreign exchange market are:

· Interest rates

· International trade

· Inflation

· Political stability