Money Supply & Quantitative Easing: How Central Banks Shape Forex Markets

Have you ever wondered why the value of the US Dollar rises one day and falls the next, or why EUR/USD seems to move with the blink of an eye? A big part of the answer lies in money supply and quantitative easing (QE)—tools that central banks use to manage economies. For Forex traders, especially beginners, understanding these concepts is crucial because they directly influence currency values and market trends.