Exchange rates move due to several factors, including:
• Economic Indicators: Data like GDP, unemployment rates, and inflation can influence currency strength.
• Interest Rates: Higher interest rates attract foreign investment, increasing demand for a currency.
• Political Stability: Political events or instability can cause fluctuations in exchange rates.
• Market Sentiment: Trader perceptions, news, and global events can drive short-term price movements.
• Supply and Demand: The supply of and demand for currencies in the market also play a key role in rate changes.