*The information provided by Great Forex is for general purposes only and not intended for trading or transaction decisions.

*The information provided by Great Forex is for general purposes only and not intended for trading or transaction decisions.

*The information provided by Great Forex is for general purposes only and not intended for trading or transaction decisions.

*The information provided by Great Forex is for general purposes only and not intended for trading or transaction decisions.

People's expectations on the foreign exchange market play a major role. Like other commodities, a country's currency tends to rise or fall in value based on expectations. The influence of this human factor on the exchange rate, sometimes even more obvious than the effect caused by economic factors. Since people are optimistic about a country's economic status, balance of payments, inflation, and interest rate prospects, a large number of the country's currency will be bought, causing the exchange rate to rise; otherwise, the exchange rate will fall. Therefore, market expectations have become important factors affecting the short-term exchange rate.

Changes in the political situation in a country and internationally will have an impact on the foreign exchange market. Changes in the political situation are usually some unexpected events, generally including elections, wars, coups, border conflicts, etc. Such short-term emergencies are beyond the expectations of the foreign exchange market, and sometimes have a great impact on the exchange rate, but the impact of he time frame is generally very short. If a country's domestic and international political situation is stable, its exchange rate will be stable; on the contrary, if the situation is turbulent, the exchange rate will fluctuate greatly.

Foreign exchange reserves are foreign exchange assets held by the central banks and other government agencies of various countries and can be converted into foreign currencies at any time. Its main purpose is to meet the needs of international payments and intervene in the foreign exchange market to stabilize the exchange rate of the national currency.

If total foreign exchange income of a country is greater than total expenditure, it will cause a surplus in the balance of payments and increase foreign exchange reserves. This will increase the exchange rate of the national currency. On the contrary, it will cause a deficit in the balance of payments and reduce foreign exchange reserves. This leads to a fall in the exchange rate of the national currency.

GDP is the gross domestic product of a country. It represents the value of goods and services produced by a country over a specific period of time. GDP is an important indicator of economic growth and the most basic factor affecting exchange rate.

Changes in GDP reflect economic growth and directly affect the relative value of a country's currency. If the GDP growth rate is high, it means that the economy is developing steadily and the currency may appreciate. If the GDP growth rate is low, the economy is weak and the currency may depreciate.

The impact of economic growth on the exchange rate is complex and depends on the subjective evaluation of the currency by both the supply and demand sides of foreign exchange.

Unemployment rate is ratio of the unemployed to the working population. The unemployment rate reflects the current and future development of the country's economy and has a significant impact on the formulation of monetary policy and the exchange rate.

In general, a decline in unemployment rate represents the healthy development of the overall economy, which is conducive to currency appreciation; an increase in unemployment rate represents a slowdown in economic development and recession, which is not conducive to currency appreciation. The relationship between the exchange rate and the unemployment rate of each country will appear in different situations, which depends on the country's own situation, the degree of dependence on foreign trade, and the type of its own trade development.