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The Complete Idiot's Guide to Foreign Currency Trading, 2nd Edition by Lita Epstein, Gary Tilkin

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Chapter 4
Why Currency Changes Value
In This Chapter
• Money and basic economics
• How politics impact currency
• Currency and interest rates
• Inflation and its money pressures
• International investors can move money values
Money makes the world go ’round, and lots of things can impact the value of that money. You can’t control any of these factors, but you definitely need to understand what they are so you can make tactical decisions about when to buy or sell a particular currency.
This chapter reviews the key factors that can impact the value of currencies, including basic economics, political change, interest rate changes, international investment patterns, inflation predictions, and money or tax policies adopted by governments and central ...

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