Chapter 2: Fundamental Factors Affecting Forex Markets
- Macroeconomic Indicators
- Gross Domestic Product (GDP)
- Inflation and Consumer Price Index (CPI)
- Employment indicators: Non-Farm Payrolls, unemployment rate
- Monetary Policy and Central Banks
- Role of central banks in forex markets
- Interest rate decisions and their impact
- Quantitative easing and tightening
- International Trade and Balance of Payments
- Trade balances and current account deficits
- Impact of import/export data on currency values
- Capital flows and foreign direct investment (FDI)
- Fiscal Policy and Government Spending
- Government budgets and deficits
- Tax policies and their impact on currency strength
- Fiscal stimulus and austerity measures
