Exchange RatesInfographic: 6 Factors That Influence Exchange Rates. Photo: Jim Makos (Flickr)

Infographic: 6 Factors That Influence Exchange Rates

As every FX trader knows, Foreign Exchange trading sees over $5 trillion traded on average every single day, making currency the largest and most liquid market in the world.

But what FX traders may be less sure of - maybe even slightly perplexed about - are the factors that influence the markets fluctuations every day of the week. Fortunately, we’ve stumbled upon an excllent infographic from HiWayFX that neatly summarises these exact points.

So whether you’re trading Sterling or Dollar, Bitcoin or Yen, here are the six factors that influence exchange rates…