Forex Exchange Rates
Using Forex exchange rates can help you make long-term investment decisions or they can give you an idea of how much your money is worth in relation to other currencies in the market.
The chart below should provide you with real-time information about what one currency is worth in relation to another. It's a pretty simple tool and if you know how to read a chart, it shouldn't be too difficult to get the info you need.
Why Rates Fluctuate
If you've ever paid any attention to the foreign currency exchange, you know that exchange rates fluctuate on a second by second basis. Why does this happen? Is some guy sitting in an office overlooking a waterfall, petting a cat and laughing at the world while he constantly changes the exchange rate between two currencies? Well, I hope not anyway.
In reality, the exchange rates between two currencies are determined by the market. Brokers, banks and traders determine what Forex currencies should trade for. Currencies are essentially worthless other people are willing to pay for them.
What Influences Exchange Rates?
Exchange rates can be influenced by many different factors in the overall market. For example, the strength of the economy as a whole has an impact on the value of its currency. The strength of the economy is determined by many factors such as retail sales, sales of existing homes, unemployment rate and interest rates.
When prominent figures such as Ben Bernanke speak about policy or news related to the economy, it can have a drastic effect on the value of a currency pair.
Sometimes, the overall level of competence or fear in the market can also have a big effect on what happens to the price of a currency pair.
If you're unsure of how to use this info or you want to know more about the Forex market in general, don't hesitate to have a look around the site. If you like what you see, please share it with your friends through the social networking buttons below. Thanks for stopping by Forex Trading Rookie!
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