So why do investors trade foreign exchange? Well, of course the most obvious reason is that you just wanna change money in order to make a payment in a currency you don't currently own. But there are loads of other reasons to trade for exchange, and in fact, most of the trading is driven by other reasons. They can be things like enhancing the portfolio returns. Maybe investors see specific upside in the currency. It might be just pure speculation. It could be risk management or diversification where investors have too much risk in one currency and wanna diversify away from that risk. In terms of price fluctuations in the FX market, what will investors look for? They will look at things like interest rates or expectations of interest rate inflation, trade deficits, how the monetary policy is run, the purchasing power parity of a currency. That means comparing how much you get for one currency in its domestic market with what you get for another currency in its domestic market. Of course, investors will look at central bank policies. Expectations of recessions or economic expansion will be key drivers. And of course, rumors about everything that we've just mentioned.