Exchange Rate Forecasts Based on Influencing Factors

The rapid acceleration of global economic integration has significantly deepened trade ties among nations, and as a result, currency fluctuations have emerged as a key factor influencing international financial stability. Exchange rates indicate a country's global competitiveness and directly affect the profits of trading companies and the flow of capital. The increasing complexity of the global trade environment has spurred a growing need for reliable exchange rate forecasts in recent years. Since exchange rates are shaped by economic, political, and market sentiment factors, understanding and analyzing these factors to develop an effective predictive model has become a central challenge in financial research, providing a deeper understanding of the global financial system. This article discusses exchange rate fluctuations and their predictions, analyzes the multiple factors that affect exchange rate changes, and sorts out the main prediction methods. This article aims to provide a reference for understanding the law of exchange rate fluctuations and their impact on the global economy, and to provide ideas for research and practice in related fields.