Information that helps you to analyze the movements of the Forex market

To analyze Forex market movement, investors may consider various factors, much like in the stock market. These include basic factors like the macroeconomic environment, capital flows, overall corporate earnings, as well as different valuation indicators. There are numerous elements influencing currency exchange rates, here are key aspects investors may refer to:

Economic development:

The strength of a region’s currency is closely tied to market perceptions of its economic outlook. Therefore, local economic data such as gross domestic product (GDP), import and export figures, consumer confidence and inflation data serve as a crucial reference to investors of the foreign exchange market. The J.P. Morgan Warrants website provides schedules for key economic data releases of multiple regions, allowing investors to get well prepared ahead of important events.

Interest Rate Policy:

Interest rate level is a crucial factor influencing exchange rates. Investors often consider the relative returns among different currencies when deciding which one to hold. For example, a widening gap in interest rate differentials between two regions may lead investors to favor currency with higher interest rates.

Additionally, the market expectations on interest rate trend can also impact exchange rates. If the market anticipates the end of the U.S. interest rate hike cycle and a shift in Japan's monetary policy from ultraloose to tightened, it could result in the depreciation of the U.S. dollar against the yen in the foreign exchange market.

For investors keen on staying informed, the J.P. Morgan Warrants website offers information on the dates of interest rate policy meetings held by major central banks around the world.

Political and economic news:

Exchange rates are influenced by the momentum of economic growth in various regions, along with factors like policies, multilateral trade relations, and geopolitical risk events. For example, events such as changes in government leadership, referendums on important social issues, and the geopolitical situation, they all have a significant impact on the foreign exchange market.

Staying informed about international political and economic news is important for investors to make informed decisions. The J.P. Morgan website offers real-time international and foreign exchange market news, providing investors with a centralized source to access relevant information.

The above information provided by J.P. Morgan Securities (Asia Pacific) Limited ("J.P. Morgan") is for information and discussion purposes only and is not intended as an offer, invitation, inducement, advice, recommendation or solicitation for the purchase or sale of any above-mentioned listed structured products or financial instruments nor does it constitute a commitment by J.P. Morgan or its affiliates ("J.P. Morgan Group") to enter into any transaction. Past performance is not indicative of future results. There can be no assurance that future results or events will be consistent with any opinions, forecasts or estimates herein.
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