According to Investopedia, 6 factors influence currencies exchange rates. Those factors are:
- Inflation
- Interest rates
- Current account deficits (meaning that the country is spending more on foreign trade than its earnings)
- Public debt
- The term of trade which is export:import prices ratio
- Economic performance
Trade currency strength
According to Avatrade, major economic events should be tracked insofar as they have a significant impact on currencies exchange rates. Such economic events include:
- Central banks meeting and interest rates decisions
- GDP
- CPI (customer price index)
- Unemployment rate and employment change
- The balance of trade