Currency Rates fluctuate all the time and while new forex traders don’t understand what moves currency prices this may serve as a starting place for what affects various currency pairs.

EUR/USD

• Dollar weakness drives EUR/USD higher
• US recovery and strong influx of foreign demand will send EUR/USD lower

USD/JPY

• Japanese government intervention to weaken their currency sends USD/JPY higher
• Gains in Nikkei and demand for Japanese assets drive USD/JPY down

GBP/USD

• High yield and attractive growth in the UK drives GBP/USD higher
• Speculation about UK adopting the euro will send the GBP/USD lower

USD/CHF

• Global stability and global recovery will send USD/CHF higher
• USD/CHF rallies on geopolitical instability

EUR/CHF

• Swiss government uses verbal intervention to weaken the franc, sending EUR/CHF higher
• If inflation took off in Germany and France it could drive EUR/CHF lower

AUD/USD

• Rising commodity prices sends AUD/USD higher
• Drought hurts Australian economy and AUD/USD

USD/CAD

• Canadian economic underperformance against US sends USD/CAD higher
• Higher interest rates and rebounding labor market in Canada will help to drive USD/CAD lower

NZD/USD

• Increased tourism and migration into New Zealand drives the NZD/USD higher
• Weakness in the Australian dollar sends the NZD/USD lower

EUR/GBP

• Speculation about UK adopting the euro will send the EUR/GBP higher
• Faster UK growth over Eurozone growth will drive EUR/GBP lower

EUR/JPY

• Fears of Japanese banking crisis will send EUR/JPY higher
• Eurozone recession will drive EUR/JPY lower

GBP/JPY

• Interest rate hikes by the Bank of England will send GBP/JPY higher
• Strong demand for Japanese assets will drive GBP/JPY lower

CHF/JPY

• Middle East conflict and volatility in oil prices will drive CHF/JPY higher
• Geopolitical stability will send CHF/JPY lower

GBP/CHF

• Interest rate hikes by the Bank of England will send GBP/CHF higher
• Speculation about UK adopting the euro will send the GBP/CHF lower

EUR/AUD

• Recessionary conditions in Australia would send EUR/AUD higher
• Rising commodity prices would boost EUR/AUD lower

EUR/CAD

• German economic rebound and Canadian weakness will send EUR/CAD higher
• Canadian economic strength and German weakness will send EUR/CAD lower

AUD/CAD

• Rate hikes by the Reserve Bank of Australia will drive AUD/CAD higher
• Droughts hurt Australia’s domestic economy and will send AUD/CAD lower

AUD/JPY

• Japanese investment in Australia will drive AUD/JPY higher
• Falling commodity prices hurt Australia’s economy, sending AUD/JPY lower

NZD/JPY

• External shocks to Asian tourism such as SARS and North Korea risks will send NZD/JPY higher
• Decline in immigration will hurt New Zealand’s growth prospects and send NZD/JPY lower

CAD/JPY

• Pessimism towards the Japanese economy will drive CAD/JPY higher
• Concern about decreased US demand for Canadian exports will send CAD/JPY lower

Forex Training