How Politics and Economy Influence the Finance Market

The forex market is one of the busiest market in the world, where global events cause immediate effects on exchange rates and currency values of countries throughout the world. 

There are certain politcal events such as a general election, war, or infrastructure planning may have a great effect on a country’s stability. Elections and other national events can be viewed by traders as cases of potential political instability and uncertainty, which typically equates to greater volatility in the value of a country’s currency. 

There are certain economic indicators and reports, that curerncy traders pay keen attention to in order to determine the strength of the economy. These reports are released by governments and independent bodies who collect and analyse the data prior to publishing it. These reports are released at set times either weekly, monthly, quarterly or annually, depending on the report.