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What is a characteristic of the fx markets?

User Wah
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1 Answer

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Final answer:

In the FX markets, supply and demand typically move at the same time. Expectations of future shifts in exchange rates affect both the demand and supply for a currency.

Step-by-step explanation:

In the foreign exchange (FX) markets, one characteristic is that supply and demand typically move at the same time. This is different from other markets where supply and demand may move independently. Groups of participants in the FX market, such as firms and investors, include both buyers and sellers. Any expectation of a future shift in the exchange rate affects both the demand and supply for a currency.

User Geekzspot
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