Sorry for my ignorance but trying to wrap my head around a certain concept
Take two pairs GBP/USD and EUR/USD. Is the USD supply of these two pairs always the same?
For example - If people started buying/exchanging USD for pounds through the interbank would this acquisition of USD also affect the amount of supply in the EUR/USD market/pair and subsequently all USD and POUND pairs or are they separate?
Know what I mean?
The way I see it is there is only a certain amount of US Dollars in the world so no matter which pair USD is bought on it must affect the supply of all USD pairs as there is simply now LESS USD in the world supply. Is this right?
Thanks in advance
Take two pairs GBP/USD and EUR/USD. Is the USD supply of these two pairs always the same?
For example - If people started buying/exchanging USD for pounds through the interbank would this acquisition of USD also affect the amount of supply in the EUR/USD market/pair and subsequently all USD and POUND pairs or are they separate?
Know what I mean?
The way I see it is there is only a certain amount of US Dollars in the world so no matter which pair USD is bought on it must affect the supply of all USD pairs as there is simply now LESS USD in the world supply. Is this right?
Thanks in advance
Time hides Nothing