{"id":24280,"date":"2017-12-19T15:51:47","date_gmt":"2017-12-19T10:21:47","guid":{"rendered":"http:\/\/www.icmarkets.com\/blog\/?p=24280"},"modified":"2017-12-19T16:23:27","modified_gmt":"2017-12-19T10:53:27","slug":"what-influences-buying-and-selling-2","status":"publish","type":"post","link":"https:\/\/www.icmarkets.com\/blog\/what-influences-buying-and-selling-2\/","title":{"rendered":"What influences buying and selling?"},"content":{"rendered":"<div class=\"wpb_row vc_row-fluid \" style=\"margin: 0px; padding: 0px; box-sizing: border-box; width: 580px; font-family: Arial, Helvetica, sans-serif;\">\n<div class=\"vc_span12 wpb_column column_container\" style=\"margin: 0px; padding: 0px; float: left; width: 580px; min-height: 28px; box-sizing: border-box;\">\n<div class=\"wpb_wrapper\" style=\"margin: 0px; padding: 0px;\">\n<div class=\"wpb_text_column wpb_content_element \" style=\"margin: 0px 0px 35px; padding: 0px;\">\n<div class=\"wpb_wrapper\" style=\"margin: 0px; padding: 0px;\">\n<p style=\"margin: 15px 0px 0px; padding: 0px; font-size: 12px; color: rgb(81, 79, 79); line-height: 18px; text-align: justify;\">\n\t\t\t\t\t\tAt the most basic level, the only thing that will ever move an exchange rate is the supply and demand for that particular currency at a given point in time. In other words, if a currency is to rally there will be excess demand in the market causing this increase in price. The opposite is true if a currency is to fall in value, there will be excess supply in this case.\n\t\t\t\t\t<\/p>\n<p style=\"margin: 15px 0px 0px; padding: 0px; font-size: 12px; color: rgb(81, 79, 79); line-height: 18px; text-align: justify;\">\n\t\t\t\t\t\tAny speculative transaction in the Forex market is entered into on the premise that future exchange rates will move in such a direction that the position becomes profitable. The below points give reasons why participants may form a buy or sell bias based on their understanding of the future direction of exchange rates.\n\t\t\t\t\t<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n<div class=\"wpb_row vc_row-fluid \" style=\"margin: 0px; padding: 0px; box-sizing: border-box; width: 580px; font-family: Arial, Helvetica, sans-serif;\">\n<div class=\"vc_span12 wpb_column column_container\" style=\"margin: 0px; padding: 0px; float: left; width: 580px; min-height: 28px; box-sizing: border-box;\">\n<div class=\"wpb_wrapper\" style=\"margin: 0px; padding: 0px;\">\n<div class=\"wpb_text_column wpb_content_element \" style=\"margin: 0px 0px 35px; padding: 0px;\">\n<div class=\"wpb_wrapper\" style=\"margin: 0px; padding: 0px;\">\n<div class=\"row-fluid\" style=\"margin: 0px; padding: 0px; width: 580px; word-wrap: break-word;\">\n<div class=\"rhcol span12\" style=\"margin: 0px; padding: 0px; float: left; width: 580px; min-height: 28px; box-sizing: border-box;\">\n<ul class=\"bullets\" style=\"margin: 0px; padding-right: 0px; padding-left: 0px; list-style-position: inside; list-style-image: none;\">\n<li style=\"margin: 0px; padding: 0px 0px 0px 20px; background: url(&quot;.\/images\/greenarrow-n.png&quot;) 0px 5px no-repeat scroll transparent; font-size: 12px; line-height: 24px; list-style: none outside none; color: rgb(81, 79, 79); text-align: justify;\">\n\t\t\t\t\t\t\t\t\tFundamentals &ndash; economic, social and political; data, reports and news that market participants can use to determine whether they want to be buyers or sellers of a currency. For example; investors chasing yield would invest in a currency pair with a wide interest rate differential such as the AUD\/USD. This is known as the carry trade, where investors will borrow funds from a country with low interest rates and invest them in a country with higher rates.\n\t\t\t\t\t\t\t\t<\/li>\n<\/ul>\n<ul class=\"bullets\" style=\"margin: 0px; padding-right: 0px; padding-left: 0px; list-style-position: inside; list-style-image: none; text-align: justify;\">\n<li style=\"margin: 0px; padding: 0px 0px 0px 20px; background: url(&quot;.\/images\/greenarrow-n.png&quot;) 0px 5px no-repeat scroll transparent; font-size: 12px; line-height: 24px; list-style: none outside none; color: rgb(81, 79, 79);\">\n\t\t\t\t\t\t\t\t\tGeopolitical outlook for a county or region &ndash; assessing the economic and political stability of a country or region and using this assessment to determine whether an investment opportunity may arise. For example, shorting the USD against the majors during the Iraq war had two benefits; the declining fiscal situation of the US due to the ballooning costs of the war and declining investor confidence\n\t\t\t\t\t\t\t\t<\/li>\n<\/ul>\n<ul class=\"bullets\" style=\"margin: 0px; padding-right: 0px; padding-left: 0px; list-style-position: inside; list-style-image: none; text-align: justify;\">\n<li style=\"margin: 0px; padding: 0px 0px 0px 20px; background: url(&quot;.\/images\/greenarrow-n.png&quot;) 0px 5px no-repeat scroll transparent; font-size: 12px; line-height: 24px; list-style: none outside none; color: rgb(81, 79, 79);\">\n\t\t\t\t\t\t\t\t\tTrade flows &ndash; importers and exporters buying and selling currencies to make and receive payments for the goods and services they deal in. For example; Japanese companies selling their cars to US will require at some point a conversion from Dollars to Yen. This will increase the demand for the Yen potentially causing it to strengthen.\n\t\t\t\t\t\t\t\t<\/li>\n<\/ul>\n<ul class=\"bullets\" style=\"margin: 0px; padding-right: 0px; padding-left: 0px; list-style-position: inside; list-style-image: none; text-align: justify;\">\n<li style=\"margin: 0px; padding: 0px 0px 0px 20px; background: url(&quot;.\/images\/greenarrow-n.png&quot;) 0px 5px no-repeat scroll transparent; font-size: 12px; line-height: 24px; list-style: none outside none; color: rgb(81, 79, 79);\">\n\t\t\t\t\t\t\t\t\tCapital flows &ndash; speculative and investment flows into and out of a currency to take advantage of higher yields, equity markets, portfolio investments and Mergers and acquisitions.\n\t\t\t\t\t\t\t\t<\/li>\n<\/ul>\n<ul class=\"bullets\" style=\"margin: 0px; padding-right: 0px; padding-left: 0px; list-style-position: inside; list-style-image: none; text-align: justify;\">\n<li style=\"margin: 0px; padding: 0px 0px 0px 20px; background: url(&quot;.\/images\/greenarrow-n.png&quot;) 0px 5px no-repeat scroll transparent; font-size: 12px; line-height: 24px; list-style: none outside none; color: rgb(81, 79, 79);\">\n\t\t\t\t\t\t\t\t\tTechnical analysis &ndash; the study of price on charts to make trading decisions. Technical indicators and analysis can give entry and exit signals for tor trades.\n\t\t\t\t\t\t\t\t<\/li>\n<\/ul>\n<ul class=\"bullets\" style=\"margin: 0px; padding-right: 0px; padding-left: 0px; list-style-position: inside; list-style-image: none;\">\n<li style=\"margin: 0px; padding: 0px 0px 0px 20px; background: url(&quot;.\/images\/greenarrow-n.png&quot;) 0px 5px no-repeat scroll transparent; font-size: 12px; line-height: 24px; list-style: none outside none; color: rgb(81, 79, 79); text-align: justify;\">\n\t\t\t\t\t\t\t\t\tMarket sentiment and climate &ndash; this can be anything from the investor confidence and the attitude of the market to risk, to the liquidity in the market.\n\t\t\t\t\t\t\t\t<\/li>\n<\/ul>\n<div class=\"next-link-ic\">\n\t\t\t\t\t\t\t\t<a href=\"http:\/\/www.icmarkets.com\/blog\/technical-analysis-2\/\">Next Article<\/a>\n\t\t\t\t\t\t\t<\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>At the most basic level, the only thing that will ever [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[308,1],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/posts\/24280"}],"collection":[{"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/comments?post=24280"}],"version-history":[{"count":14,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/posts\/24280\/revisions"}],"predecessor-version":[{"id":24484,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/posts\/24280\/revisions\/24484"}],"wp:attachment":[{"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/media?parent=24280"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/categories?post=24280"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.icmarkets.com\/blog\/wp-json\/wp\/v2\/tags?post=24280"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}