The development of individual currencies is strongly dependent on various influencing factors. Economic and political developments in a country or an economic area can have a negative or positive impact on the development of a currency.
The influencing factors can be interest rate increases of a central bank, imbalances of the markets involved, natural disasters, crop failures, adverse development of commodity production and much more. Changes in the key interest rate are regularly responsible for strong price movements.
However, it is important to interpret the developments on the currency market correctly. It makes little sense to panic about certain announcements, which have a negative impact on the performance of individual currencies. It often turns out afterwards that the panic reactions were unfounded and exaggerated.
