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Learn About The Main Factors That Influence Foreign Exchange Rates

Do you want to learn about foreign exchange rates? If yes, you are in the right place!

You may know that the value of a currency is determined by supply and demand for it. If people want to buy or sell a currency, its value goes up or down accordingly. The more demand there is for a particular currency, the higher its price will be compared to other currencies. The higher its price, the greater its value relative to other currencies (i.e., the higher its exchange rate). But what does influence this?

Main factors that influence foreign exchange rates

Economic Indicators and News – One of the biggest factors affecting foreign exchange rates is economic data released by governments around the world. A good example would be when China releases its quarterly GDP report each year. This report gives us an idea of how well China is performing in terms of economic growth. If China’s GDP report shows signs of slowing down; it will likely impact all other Asian economies as well as those in Europe and North America. This can cause investors to panic and sell off their stocks; which leads to an increase in demand for USD as people want to protect their investments from market volatility.

Learn About The Main Factors That Influence Foreign Exchange Rates
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Interest Rates – Another key factor influencing forex rates is interest rate differentials between countries. For instance, if there is a large gap between US interest rates and those in Europe or Japan; then traders will start selling USD in order to buy EUR or JPY because they believe these currencies have more value.

Be up-to-date with Exchangr API

So, foreign exchange rates are determined by supply and demand. And this is constantly changing. To be up-to-date with what is happening in the world market, you’ll need a foreign exchange API. With a forex API like Exchangr you can obtain real-time and historical data about currency prices, exchange rates and other related information. This means that whatever happens in the world of foreign exchange; you’ll know about it immediately through your own personal application programming interface (API).

Exchangr API can assist you in growing your business; or obtaining financial profits by delivering high-quality information about foreign exchange. This forex API utilizes JSON to provide real-time and historical data on 172 different foreign currencies. Its forex data comes from a variety of reliable commercial sources. As a result, this API is reliable, accurate, and dependable; and you can use it to get the current exchange rate for any currency pair, or to get the historical data for any pair of currencies you want!

Learn About The Main Factors That Influence Foreign Exchange Rates

Does Exchangr API offers a free plan?

Exchangr offers three different plans for anyone who is interested in forex. The first one is a very comprehensive plan; and the best of all is that it is free! It allows you to make 100 API calls every month, as well as get support, and hourly upgrades. You may also acquire historical rates data and access to Exchangr’s endpoints (conversion, timeseries, fluctuation). This plan is ideal for anyone who requires financial assistance while beginning a business.

However, if you want more than what has been discussed, Subscription Plans can provide advanced functionality and API access. For instance, its Growth plan will provide you with 10.000 API requests every month; premium support; and updates every ten minutes; as well, as all of the above. You can check out Exchangr’s Pricing here.

So, with all this information in mind, start using Exchangr API to obtain forex data in no time!

Related post: Is There A Real Time Forex Rates API For Everyday Use?


Also published on Medium.

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