Hey guys. I'd like to know what moves currencies up and down. What are the factors that move it I know interest rates is 1 but what are the others? I want to kinda know where the trend is heading economically!
Try this book:
http://www.amazon.co.uk/Currency-Tr...6234/ref=sr_1_1?ie=UTF8&qid=1296839322&sr=1-1
It may not answer all your questions, but it will help to some extent. Might be cheaper on amazon.com and/or marketplace.
Congratulations on being intelligent enough to ask the question.
Some people never get beyond "Because it bounced off support and is now crossing the 55 EMA....etc". Technicals have their place, but it's better to see the big picture, IMHO.
Bear in mind that there are long-term, medium-term, and short-term factors.
It is sometimes said that Fundamentals affect the long-term, sentiment the medium-term, and technical factors the short-term. But of course, there is more to it than that.
One thing to be aware of is risk-appetite versus risk aversion. The market tends to swing from one to another, and back, and the reasons are not always entirely rational, and are often contradictory. That's what makes it such "fun", and why some people say "you can't trade on this stuff. Price tells me all I need to know". Well, price tells you a lot, but I don't think it is all you need to know.
Another thing to consider is that it's not always the fundamental factors that move the market, but the reaction of market participants to those factors. So for example, a central bank may raise interest rates, and in theory this should be good for the currency of the country whose central bank it is. But if the judgement of "the market" is that the bank or government isn't actually serious about tackling inflation or other problems, then it might not, and might even have the opposite effect. Similarly, if the market was expecting a .5% rise and it only got a .25% rise, that might also weigh on the currency.
....etc.
Good luck.
p.s. "Lulz" is part of life here. It relieves the boredom between trades. Try not to rise to it.
