Capital markets, in general, are unique from other markets for goods and services. While I do believe the Forex is driven by supply and demand for the respective currencies at play, often what really moves the markets is anticipation of future supply and demand rather than actual supply and demand. That realization comes to most traders at some point in their career. This concept leads to the biggest question in the Forex. Where do these estimates of supply and demand come from?
Surely a comprehensive survey of every user of every currency is impossible. However, there are ways to aggregate and access some information in one place. This is the purpose of news and announcements. News comes from a variety of sources—