The Currency Market, also known as the foreign exchange market or Forex, is a global decentralized marketplace for the trading of currencies. It is the largest financial market in the world, where participants such as banks, financial institutions, corporations, governments, and individual traders buy and sell currencies. The market operates 24 hours a day, five days a week, reflecting its international nature.
Currency trading involves the simultaneous buying of one currency and selling another, typically quoted in currency pairs (e.g., EUR/USD or USD/JPY). The value of each currency is influenced by various factors, including economic indicators, interest rates, political stability, and market sentiment. The Currency Market facilitates international trade and investment by allowing businesses and investors to convert one currency into another for transactions and hedging against currency risk.
Due to its high liquidity, low transaction costs, and potential for profit due to fluctuations in currency values, the Currency Market attracts a wide range of participants from retail traders to large financial institutions. It plays a crucial role in the global economy, impacting trade, investment flows, and foreign exchange reserves.
Ukraine’s willingness to consider a 30-day ceasefire proposed by the U.S. has sparked optimism in global markets, providing a brief respite from geopolitical tensions. The yen fell sharply, losing 1.68…