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AbieDS

What are the major factors that affect the market?

over 4 years ago

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ForexGump

Political, economics, social, technical, and sentimental are the biggest factors that affect the markets. Political factors like a political instability in a particular country or a terrorist act maybe, may cause cause panic in the streets and may trigger a sell down in the markets. An example of a social factor is the recent swine flu epidemic. Market participants veered away from he markets when the news of the epidemic came out since they thought the such would have a negative impact on the economy. The technical aspect is a little more psychological. Here, investors buy and sell their securities when the security and/or the market achieve a particular price level. Investors also buy and sell when market conditions are said to be in 'extreme' levels (overbought, oversold).Economic factors are the fundamental measures of economies. Example of such measures are the GDP, unemployment rate, CPI, retail sales, etc. Improvements in these figures would usually reflect well in the respective economy and its currency.Another huge factor that is recently affecting the market is the investors' sentiment. Risk appetite, which is sparked by at least improvements in economics, leads investors to buy up the markets and other higher yielding assets. Conversely, any pessimism causes investors to move to the safety of treasuries, safe currencies (USD and JPY) and away from higher yielding assets.

over 4 years ago

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ForexEA

Here is an article about Forex market hierarchy http://pipburner.com/crash-course-a...

over 2 years ago

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Ann123

Hey, I’m not sure about this answer but I guess it won't hurt to try. The first factor maybe ‘Fundamentally’, if you have noticed, there is a big impact in the market whenever a “BIG” news comes out. Whether it’s good or bad there is still an effect. The second one is ‘Technically’, here in this second factor; traders are the ones who give impact to the market. I mean the more indicators traders use, the more it affects the market.

over 4 years ago

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