What does make currencies go up and down?

Question

What does make currencies go up and down?

Answer 1

I did a search and found http://forexmoguls.com

It seems that, adding to the previous poster's answer, a confidence in a currency/trading pair is primarily based off the world news/economic news.

A lot of people, even experienced traders think currencies are affected solely on economic news. But, history has proven that even with news of an upcoming natural disaster (i.e. a hurricane), currency rates are affected in one way or another.

Hope this helps.

Answer 2

It is like in any market - supply and demand.

Answer 3

There are several reasons for this.The elementary reason is that ,as in any market there are buyers and sellers in foreign exchange market too, causing price changes.The market players can  be arbitrageurs,hedgers or speculators. Demand and supply is also a factor.Economic fundamentals like interest rate differentials, balance of trade, current account deficit , economic policies also play a role. A very important one at that.

Answer 4

Long term, Interest Rates.

Short term, Greed & Fear.

Good luck! - jim http://jsforex.blogspot.com

Answer 5

confidence or lack of. interest rates.

What effects those factors though?