There are several factors. We have macroeconomic data that greatly influences the quotations, especially the quotations of the foreign exchange markets. Quotations can also be influenced by political aspects. We also have one category, raw materials that can influence currency quotations, especially in Australia and New Zealand. There are also geopolitical effects, a crisis or a war, the ratio between demand and supply. The main players in the markets are institutional traders, mainly represented by large financial-banking corporations, large banks, individual traders, retail category, top hedge / pension funds, central banks (happens to operate directly in foreign exchange markets), large corporations , governments and retentive companies.
How is the demand and supply price influenced?
There are two laws that apply. The law says that on the rising price the demand decreases. The quantity of products purchased decreases as the price increases. As a result, people will naturally avoid buying a product that will force them to give up something else that is considered a higher value.
The law of supply is a measure of the quantity of products that will be sold at a certain price. Unlike the law of demand, in this case the curve has an ascending slope. This means that as the price increases, so will the quantity available. Manufacturers can supply more at a higher price, as this will increase their revenues.
In the situation where supply and demand are at equilibrium, ie the two curves intersect, we are in a situation of equilibrium. The allocation of goods and services is at maximum efficiency, because the quantity produced is equal to that required, so there are no unsold products in stock, nor is there a demand that is not met. All actors involved in this process are satisfied. At this equilibrium level all producers can sell their entire quantity of products, and, at the same time, consumers can thus completely satisfy their need.