Three Factors at Forex
The three factors that the value of USD in the Forex market, technical factors affecting supply and demand situation and market psychology.
Let ’s take a look at the action of these factors on currency trading.
Supply against Demand for USD :
The higher the rate of export the higher will be the demand of that currency. For instance, when a country sells products or services overseas it creates demand for the currency of their nation.
Likewise, when the US exports goods and services to other it succeed to create demand for USD because to make payment of the exported items they need USD and for that, they need to exchange their i.e. sell local currency in exchange of USD to make the payment of the export items.
