Lesson 3 of 83:005 Sources
Why do prices move?

Recorded. Publishing soon
Educational content, not investment advice. Nour explains how markets work. She never tells you what to buy or sell.
Prices move when buyers and sellers fall out of balance: more buyers push price up, more sellers push it down. Four things usually tip that balance:
- Central banks and interest rates – higher US rates tend to lift the dollar; gold, priced in dollars, often moves the opposite way.
- Economic data – markets react to the surprise versus expectations, not the number alone.
- Geopolitics – crises push money into safe havens like gold, the dollar and the Swiss franc.
- Sentiment – fear and greed amplify moves.
Check the economic calendar before, not after, the move.
Quick check
Three questions. Pick an answer to see why.
1.Expected jobs were 100,000 and the actual figure was 50,000. Why does the market move strongly?
2.If the Fed signals future rate cuts, what is the typical chain reaction?
3.Which of these is NOT one of the four price drivers in the lesson?
Sources
Every fact in this lesson is backed by the sources below.
- 1.Banco de España – How does monetary policy relate to exchange rates?Raising interest rates tends to make a currency more attractive and lift its value; the central bank does not set the exchange rate directly
- 2.Federal Reserve Board – IFDP 570: Macroeconomic news and the dollarExchange rates react to the surprise component of data releases (e.g. a payrolls surprise moves the dollar)
- 3.Federal Reserve – FOMC statement, 16 Sep 2026Fed rate decisions are published as FOMC statements (released at 2:00 p.m. US Eastern time)
- 4.World Gold Council – Gold Market Commentary, April 2025A weaker US dollar and heightened risk pushed gold higher; higher rates can be a drag; investors turn to safe havens in uncertainty
- 5.Swiss National Bank Working Paper 2013-04 – Is the Swiss franc a safe haven?The Swiss franc tends to appreciate against many currencies when global risk rises
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