No market can work in isolation in this world. It is same for FOREX market as well. At a given time, a number of happenings in different other markets are affecting FOREX and hence it is important that you, as a professional FOREX trader, take account of different markets and the impact of those market situations on FOREX. It may seem a very simple thing to discuss but, in reality, a number of professional investors and FOREX traders fail to take account of these things and ultimately end up making poorly decided transactions.
Though each thing, when happened at a macro level, can have the tendency to influence FOREX rates, certain things have a direct link and hence current happenings related to these things should never be ignored. For example, Canada is among the biggest exporters of oil in the whole world. If the rates of oil are to go up, it will definitely help the Canadian currency, i.e. Canadian Dollar (CAD). Similarly, an increase in oil prices is often associated with the decrease in the value of the United States Dollar (USD). Hence, a visible link can be established between movements in different markets and FOREX currencies.
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