In any business, critical factors can make or break your success. The same is true in the forex market. If you don’t have a firm grasp of the major driving forces in this market, you’re likely to fail.

So, what are these critical factors? Let’s take a look.

Economic data

It’s perhaps the most crucial factor that affects forex prices. Central banks worldwide constantly release economic data, which can have a significant impact on currency values. For example, if a country releases solid economic data, its currency will usually strengthen against other currencies.

Interest rates

They can significantly impact currency values, especially in the long run. For example, if a country’s interest rates are higher than other countries, its currency will usually appreciate over time.

Geopolitical factors

Geopolitical factors can also have a significant impact on the forex market. For example, if there’s political instability in a country, its …