Factors Influencing Foreign Exchange Rates
Conduct independent research to form a view on current and future market conditions in the foreign exchange market and submit a report explaining the market view. Discuss the factors influencing exchange rates and use financial news and events to support your conclusions.
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About This Document
This article discusses the economic factors that influence foreign exchange rates, such as inflation rates, interest rates, balance of payments, terms of trade, economic performance, stability of political climate, and speculations. It also explains how the level of demand for currency affects the price of the market. The article provides a graph showing the exchange rate of a single GBP to Euros monthly up to September 2019 and concludes with a discussion on the expected rise of GBP in relation to Euro in the coming months.