Yesterday and the day before yesterday, we have seen the main factors that impact the currency exchange rates of the forex. It comes to short-term factors. Long-term trends of currency are created by other factors. Let us look at this in more detail.
The factors that create the trends of the currencies of the forex are called the fundamentals. In the long term, the fundamentals are always right even if the traders in the short term can be blinded by a stream of information is huge.
The fundamentals are different for each currency. Here, the three most important, in order of importance, for the eight major currencies the following :
Australian Dollar : Growth of China, Prices of raw materials, Level of risk aversion.
Canadian Dollar : oil Prices, Us Growth, Growth in Canada.
Swiss Franc : safe-haven Status, Growth in Switzerland, the SNB.
Euro : risk aversion, internal Crises in the euro zone, Growth in the euro area.
British pound : risk aversion, Growth, Great Britain, the central Bank of England.
Japanese Yen : safe haven, Carry trade, central Bank of Japan.
Dollar new zealand : Growth of China, Growth in australia’s Level of risk aversion.
Us Dollar : safe haven Status, Growth of the United States, Fed.
As you can see, central banks are never the main factors of influence of the trends of the currencies of the foreign exchange market. They amplify just the movements have already been trained. Note, however, that in the long term, they can, all the same, to reverse the trends.