The law of supply and demand is a fundamental concept in economics and holds true in the forex business as well. Traders use this principle to analyze market dynamics and identify potential price movements. However, market forces can be influenced by a variety of factors, including geopolitical events, central bank policies, and market sentiment, which can sometimes result in unexpected price movements. While the law of supply and demand is not a foolproof predictor of market movements, it remains a useful framework for understanding market dynamics and developing trading strategies.
