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Analyzing Supply and Demand's Influence on Forex
November 16, 2023
What impact does supply and demand dynamics have on the foreign exchange market?
Supply and demand dynamics play a pivotal role in determining currency values in the forex market. Increased demand for a currency relative to its supply can lead to appreciation, while higher supply or reduced demand may cause depreciation. Factors such as trade balances, interest rates, geopolitical events, and investor sentiment collectively shape supply and demand dynamics, impacting forex market movements.
Tags : Supply , Demand , Forex Market , Market Forces