Exchange Rates

Exchange rates are determined by supply and demand. Supply and Demand of currency or something else?

The exchange rate is important in a few spots in regards to Forex trading. First and foremost, it is used to determine the price between the 2 currencies in each pair, basically, what a trader pays for each “item” when buying and selling the pairs. When one currency in the pair either gets stronger or weaker against the other one, that price changes, which is the “exchange rate.”

Also, the exchange rate is important if a certain trader is buying and selling pairs of which their home currency is not in that mix. The rate between their currency and the primary currency in the pairs they are trading has a factor as well.

Exchange rates are determined by Supplied and Demand and many other factors that affect a currency.

To keep it simple. Every deal is the tick.If there is more market participants interested in owning EURO than USD , EURUSD rate goes up. if there is more sellers of euro than buyer: EURUSD goes down.
Supply and demand for the currency may be fueled my plethora of different factors,both macro-and microeconomics related.

Exclusively by changes in supply and demand of both currencies (assets).

Yep, that’s pretty much the basic principle behind it. Supply is usually controlled by central banks through money market operations or currency intervention while demand is driven by factors like interest rates, which are in turn influenced by economic growth, inflation, and other fundamental data.