The Forex market operates as a decentralized network of banks, financial institutions, brokers, and individual traders. Trading occurs 24 hours a day during the business week on interbank networks, allowing participants to buy and sell currency pairs based on real-time market prices.
Major currency pairs include those that involve the U.S. dollar and are among the most traded in the market. Examples include EUR/USD, USD/JPY, GBP/USD, and USD/CHF. These pairs tend to have higher liquidity and tighter spreads compared to exotic or minor currency pairs.
Several factors influence currency exchange rates, including:<br> - Economic Indicators: GDP, inflation, employment data, and interest rate decisions.<br> - Political Events: Elections, government policies, and geopolitical tensions.<br> - Market Sentiment: Changes based on traders' perceptions and reactions to global news.<br> - Technical Factors: Price patterns, support and resistance levels, and technical indicators.
