O'Reilly logo

FX Trading: A Guide To Trading Foreign Exchange, 2nd Edition by Peter Pontikis, Larry Lovrencic, Alex Douglas

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 7: Factors influencing FX markets

Over the longer term, it is undeniable that underlying economic fundamentals will drive the currency markets in one direction or the other. In the shorter term, however, elements of fear, greed and herd behaviour drive the foreign exchange markets. This herd mentality can be reflected in short-term movements that are often a reaction to market rumours, or might evolve as a longer term phenomenon because traders are paying undue attention to one area of market influence while virtually ignoring another. We saw this in the late 1990s, when the United States and the USD became the ‘flavour of the month’ among global investors, despite the everpresent trade deficit.

Many factors in each country can and ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required