1, supply and demand. The relationship between supply and demand in the foreign exchange market is the most basic factor to determine the market equilibrium and change. When the supply of a certain currency exceeds the demand, the exchange rate of that currency against other currencies will decline; When demand exceeds supply, the exchange rate will rise.

2. Terms of trade. Changes in the terms of international trade will affect the supply and demand of currencies in various countries, thus affecting the exchange rate. If a country's exports increase, it will increase the demand for its currency and support its exchange rate appreciation; The increase in imports will increase its money supply and make the exchange rate fall.

3. Capital flow. International capital flow is another important factor affecting the foreign exchange market. When a country receives a large amount of foreign investment, it will increase the demand for its currency and support the exchange rate to rise; When a large amount of domestic capital flows out, it will increase the money supply and lead to a decline in the exchange rate.