# How does economic news affect the Forex Market?

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The forex market is ultimately driven by economic factors that impact the value and strength of a nation’s currency. Generally speaking, forex traders can look at economic news to assess its impact on interest rates and monetary policy​. News that suggests a more hawkish (aggressive) central bank tends to push forex pairs up in value relative to other currencies, while dovish (peaceful) news can cause a currency to depreciate.





 
