#CurrencyPairPrediction Factors influencing exchange rates are the diverse forces that drive the fluctuations in the value of one currency relative to another. These can be broadly categorized into economic, political, and social factors. Economic factors include macroeconomic indicators like inflation rates, interest rates set by central banks, gross domestic product (GDP) growth, employment levels, trade balances, and government debt. Higher interest rates can attract foreign investment, increasing demand for the domestic currency. Strong economic growth and positive trade balances also tend to support a currency's value. Political factors encompass government stability, policy changes, geopolitical events, and international relations. Political instability or unfavorable government policies can erode investor confidence, leading to currency depreciation. Social factors, while less direct, can influence investor sentiment and economic trends. These include consumer confidence, demographic shifts, and societal changes that might impact economic activity. Understanding the interplay of these multifaceted factors is essential for comprehending and attempting to predict currency pair movements in the Forex market.