Forex prices also influence global trade, as companies buying or selling across borders must take currency fluctuations into account when determining https://www.forextime.com/education/forex-trading-for-beginners their costs. Inevitably, the forex has an impact on consumer prices, as global exchange rates increase or lower the prices of imported components.

  • Longer-term changes in a currency’s value are driven by fundamental factors such as a nation’s interest rates and economic growth.

As in the spot market, the price is set on the transaction date but money is exchanged on the maturity date. Spot transactions for most currencies are finalized in two business days. The major exception is the U.S. dollar versus the Canadian dollar, which settles on the next business https://fsclc.eu/ day.

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