Forex: Who & What Drive the Market

Main Players in Forex:

1. Banks & Central banks - There are the main player. Their trader trade currency through bank's proprietary accounts. Banks actively trade is to moderate the strength or weakness of the country's currency.
2. Investment funds & Hedge funds - Hedge fund also speculating currencies. The most famous hedge fund is Quantum fund who famous in speculating currencies.
3. Companies - some companies may need to buy foreign currency for international trade.
4. Retail Trader - There is small retail trader, who make some money from Forex Trading. People can access to online trading easily.

There are lots of factors to make a move in Forex Market, there are:

1. Balance of Payments
2. State of economy
3. Implications drawn from chart analysis
4. Political Factors
5. Psychological Factors
6. Purchasing Power
7. Fundamental factors such as inflation & interest rates
8. Activities by professional currency managers

News always bring significant impact to the pair currency, example:

1. Interest Rate- interest rate up, currency up
2. Employment - Employment down, currency down
3. Trade balance - The larger the deficit, the weaker currency
4. GDP - High economic strength, currency up
5. Retail Sales - Sales up, Strengthen Currency

Use the ForexFactory : http://www.forexfactory.com/ to understand the date of news release.

Focus on the primary importance indicators first..

More on Forex Market drivers : Forex : More on Forex Market Moving Driver