Over the last decade, the whole world has witnessed some of the very mammoth variations and the fluctuations in the forex trading market. The few of the major currencies have shown some serious rise while some other currencies have declined considerably. All these changes helped a lot for the emerging economies of the world also it affected the world’s major currencies and the bigger economies of too. The drastic changes in the currencies play a vital role in the lifestyle of the individual and on the way of working of the countries and the companies. We have all seen in the last ten years that the European countries, Japan and Canada all have faced the dramatic moves in their respective currencies as compared with the strong US dollar. There are various reasons and some big trends behind the liquid currency movements.

The forex analysts have come to the conclusion after their studies and the reports that all the participants of the trade forex market should realize the fact that there was a boom in the financial markets in the period between the years 2000 and the 2010 and there were factors and the favorable news responsible for that. In the international trade forex market, the currency can be defined as the medium through which people exchange the things and the services amongst the countries possessing different economies. Still the currency values which are fixed by the free open market for the different types of traders having various reasons and motives it could mean that the real trading fundamentals and the monetary can be kept aside.

The Government economic policies of the developed countries, the payment balances, the foreign assets and the responsibilities should also be considered in the point of view of the forex trading. The foreign exchanges rates are mostly tentative but these act as the major force behind the future predictions and the events, which depends a lot on the people’s awareness of the forex concepts. The economic policies and the interest rates have a huge impact on the exchange rates of the countries. The increase in the interest rates will not affect the currency pair in the same way as the difference in the currency rates will have much greater effects.