Basic Beans

What Makes Forex Pairs Move?


Jul.17.2013

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Nope, it’s not music. I mean we wish the currency pairs at the forex parties would jump up and down to the rhythm of the latest Lady Gaga song playing on a particular radio station that everyone knew about. It would make the traders’ lives much easier. You would have just needed to know the song by heart to be able to predict what move the pairs are going to make next.

The currency pairs at the forex party sure like to “move it move it” but they listen to totally different stuff. They usually like to listen to smart and geeky stuff such as economic growth, interest rates, political stability, technical factors, and market psychology. All these come together like a puppet master and make the pair move on the dance floor.

currency pair dancing in the forex market

Forex traders therefore need to analyze the movements from different aspects to be able to understand what movement the currencies are going to make next.

And just for the record, being geeky is considered super awesome these days.

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