Supply and demand play a crucial role in Forex, influencing currency prices through various factors like trade flows, economic data, and geopolitical events. But how exactly are supply and demand balanced in the Forex market?
Not sure if there are any professors in Economics over here. Perhaps you should contact the Universities and look for PiE. We mainly focus on the charts as we want to buy low sell high sell high buy low. Beyond that, traders will suffer from Data Analysis Paralysis.
It is all about the big players like central banks and global events. Do you watch these factors closely?
In the Forex market, supply and demand are balanced by the volume of buy and sell orders. Factors like economic indicators, interest rates, geopolitical events, and trade flows influence demand for currencies. When demand exceeds supply, prices rise, and when supply exceeds demand, prices fall, creating market equilibrium through constant buying and selling activity.