Forex is a global system based on monitoring the supply and demand worldwide. When we talk about Forex market, you have to think about globalization and how it has impacted on regional economies become increasingly integrated through a network of trade and communication – which allows the possibility of negotiating. Prices are determined throughout the world, supply and demand for foreign currency, goods and services – and therefore need a global vision which is negotiated to achieve some success. Trading foreign exchange currencies is evaluation and behavior, while the values of these are driven by capital and trade flows. All movements in the currency market are caused by supply and demand and economic indicators for evaluation are simple capital and trade flows. When we measure the flow of capital, we need to look at the money that is coming in and out of an economy with late investment, for example, look how much is being used to buy stocks and bonds, or how much is spent on the merger or acquisition of new businesses.
Due to globalization, money is constantly crossing borders and the amount of money that flows between countries increases. In recent years technology has made the world smaller and easier for investors to invest in economies and around the world regardless of where they live. This also means that global investors can have an impact on the currencies in which they invest. The flow of capital between economies and other currencies also affect the economies participating in the exchange, which shows the symbiotic relationship that forms between countries due to globalization. Trade flows can be evaluated by analyzing the amount of money that is coming in and out of an economy of tangible goods and services, such as electronics and vehicles or professional services. Today, cross-border trade is an important part of many economies. Globalisation means that goods can be exported worldwide and this flow of trade between economies may have a direct effect on the value of the currency. Every time goods are imported the money changes hands and impacts on supply and demand are the ones that affect currency prices.