Forex market moving factor / Supply and Demand
Another forex market moving factor is the supply and demand in the forex market. It emerges on the international trade data, but the accuracy is losing because the forex activity for hedge is not taken into account. The international trade data is divided by two parts, one is the current account and the other is the capital account. The trade balance is composites of current account and is focused closely in the forex market.
International capital data
Recently, the international capital data is made much of in the forex market, compared with the trade balance. It is because that the capital transactions accompanies the huge money and those would affect heavily to the forex market. It is needless to say here that the international capital data is belonging to the capital account.
The international capital outflows would arise from the overseas investment by some domestic institutions and the overseas expansion by some domestic manufacturers. On the contrary, the international capital inflows arise from the cross border acquisition by some foreign companies and so on.
In this way, the trade balance, the international capital data and supply and demand relating to hedge would affect the forex market.