• Interest rates set by central banks
• Economic indicators such as GDP, inflation, and employment data
• Political and geopolitical events
• Market sentiment and investor confidence
• Government policies and interventions
• Supply and demand dynamics

3. There are several forex trading strategies, including:

• Trend following: Traders identify and follow the prevailing market trends, aiming to profit from sustained price movements.
• Range trading: Traders identify price ranges or support and resistance levels and aim to buy at the bottom and sell at the top of the range.
• Breakout trading: Traders watch for price breakouts from established ranges or chart patterns and aim to enter trades in the direction of the breakout.
• Carry trading: Traders take advantage of interest rate differentials between currencies to earn interest while holding positions overnight.
• News trading: Traders base their trades on the impact of economic news releases and events on currency markets.

Leverage allows traders to control larger positions in the market with a smaller amount of capital. It is a loan provided by the broker to the trader, enabling them to trade with borrowed funds. Leverage is expressed as a ratio, such as 1:100, which means that for every dollar of trader's capital, they can control $100 in the market. While leverage amplifies potential profits, it also magnifies losses, so it should be used with caution.

• Market volatility: Currency prices can be highly volatile, leading to rapid and substantial price fluctuations.
• Leverage risk: The use of leverage can result in significant losses if trades move against the trader.
• Counterparty risk: There is a risk that the broker or counterparty may default on their obligations, especially in unregulated or offshore markets.
• Economic and political risks: Economic or political events, such as elections or policy changes, can cause sudden and adverse currency movements.
• Lack of control: Traders have no control over market conditions and cannot predict or control the direction of price movements.

To improve your forex trading skills, consider the following:
Education: Invest time in learning about forex trading concepts, technical analysis, risk management, and trading strategies.
Practice: Open a demo trading account to practice trading without risking real money. This allows you to refine your skills and test different strategies.
Keep a trading journal: Document your trades, including the reasons behind each trade and the outcomes. Analyze your journal regularly to identify patterns, strengths, and areas for improvement.
Risk management: Develop a risk management plan to protect your capital. This includes setting stop-loss orders, using appropriate position sizing, and avoiding excessive leverage.
Stay informed: Keep up to date with economic news, market events, and developments that can impact currency prices. Use reliable sources and economic calendars to stay informed.
Learn from mistakes: Embrace losses as learning opportunities and identify areas for improvement. Continuously evaluate and adapt your trading approach based on feedback and experience.