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Trade War Escalation Rattles Forex Market: Fundamental Factors Determine Currency Strength

Introduction: The foreign exchange (forex) market is a dynamic and complex arena where the values of currencies fluctuate based on a multitude of factors. One such factor that can significantly impact currency strength is a trade war. When nations engage in escalating trade disputes, the repercussions reverberate throughout the forex market, creating ripples of uncertainty and volatility. In this blog post, we will delve into the fundamental factors that determine currency strength and how a trade war escalation can influence the forex market. Understanding Fundamental Factors in Forex Trading: Fundamental analysis plays a vital role in forex trading. Traders evaluate economic, political, and geopolitical factors to determine the relative strength or weakness of a currency. Some key fundamental factors include interest rates, inflation, GDP growth, employment data, geopolitical stability, and trade policies. By examining these factors, traders make informed decisions about buying or