Determinants of the currency values

[LorrainMor]

Demand and supply of currency pairs are the determinants of the currency values where the more demand for a pair, the more prices will increase. Whenever the supply of currency pairs is increasing the price is becoming less gradually. Thereby, it is essential to maintain a balanced demand and supply of currency pairs as much it can be possible. However, I personally like to trade various major currency pairs to my comfort zone.

 

[Tom Latham]

Demand and supply of currency pairs are the determinants of the currency values where the more demand for a pair, the more prices will increase. Whenever the supply of currency pairs is increasing the price is becoming less gradually. Thereby, it is essential to maintain a balanced demand and supply of currency pairs as much it can be possible. However, I personally like to trade various major currency pairs to my comfort zone.

Well, in this case! I rely on market a movement that means price action! Besides, support/resistant levels help me to identify the important levels of the market.

 

[Pevisi]

I have learned supply-demand theory at my University. The equilibrium theory looks perfect in University books, but in reality is almost impossible, and I think that it has never occurred in modern history (at least I don’t know)

 

[sininfinity]

I have learned supply-demand theory at my University. The equilibrium theory looks perfect in University books, but in reality is almost impossible, and I think that it has never occurred in modern history (at least I don’t know)

Yeah, real life experiences are different from book examples. There you can have a perfect scenario where in real world it is almost non existtent.

 

[Svetlana Loboda]

I have learned supply-demand theory at my University. The equilibrium theory looks perfect in University books, but in reality is almost impossible, and I think that it has never occurred in modern history (at least I don’t know)

Well said; so true! The reality is always (most of the time) different than the white pages! This is why, having a long time trading experience is useful here instead of any educational based background.

 

[robert.miner]

Even a theory from a forex master not compatible with today forex price movement...

 

[Tom Latham]

Even a theory from a forex master not compatible with today forex price movement...

So you think, trading is harder now by comparing old memories? May I know your trading year’s number?

 

[Mark Dahl]

A country's exchange rate provides a window to its economic stability, that is why it's perpetually watched and analyzed.

 

[Eduardo Lucchese]

You should be always careful about the market situation as the market is very voilatile.

 

[Gito Dinev]

Aside from factors such as interest rates and inflation, the exchange rate is one of the most important determinants of a country's relative level of economic health.

 

[FXOpen Trader]

Aside from factors such as interest rates and inflation, the exchange rate is one of the most important determinants of a country's relative level of economic health.

We will also need to understand about the Interest rate decisions that are taking place around the world as they will have a profound impact on the currency rates soon.

 

[Benjamin Bryne]

If you want to trade, you have to think about the currency value. If we have to think about the value of money, then we have to think about the development of money in that country.

 

[Alicia Lynch]

The Forex market is governed by supply and demand. If the market value can be identified, it will be easier to understand.

 

[Cooper Truebridge]

There is momentum in the market depending on the value. The better the supply and demand, the higher the price volatility.

 

[Alexander Hudson]

You have to gather all the basic knowledge of forex properly to make a good amount of money.

 

[Hoosegow]

News and other events that affect the forex market actually affect the demand and supply of a currency value. This effect is reflected on the charts when orders are placed for different prices at different times. So, demand and supply are pretty important things in forex.

 

[emerald]

News and other events that affect the forex market actually affect the demand and supply of a currency value. This effect is reflected on the charts when orders are placed for different prices at different times. So, demand and supply are pretty important things in forex.

Yeap, that is very true. One thing I noticed is that these demands and supply are deterimental for the forex curreny value

 

[Malapropism]

Currencies are like commodities, so if more people buy a certain currency, its value increases, and if it is not purchased often, the value decreases. It’s a game of supply and demand, which others have cited too.

 

[FXOpen Trader]

Currencies are like commodities, so if more people buy a certain currency, its value increases, and if it is not purchased often, the value decreases. It’s a game of supply and demand, which others have cited too.

In the business of Forex trading it becomes more important to make use of a planned trading strategy for getting the success.

 

[Evagation]

Supply and demand of the currencies is the main determinant of the currency value which is dependent on various factors like inflations, political stability and economic health of the country. To make better trading choices, one should have a keen knowledge about such factors.