Actually MM are obliged to take the opposite side of our trades since they are the supply side, so more bids than ask should mean that they are selling a lot to institutions and retail?
Honestly I don't think MM profit much from market movements, they mostly make profits from spreads or certain statistical strategies - this is just based on some traders working at MM who i talked to... Unless you are talking about hedge funds etc. that are on the buy side.
for example after news release/before price tends to spike because the MM don't want to take on additional risk, so they keep quoting higher and higher prices to clients who are trying to buy (hedge funds, institutions, large investors, retail) so that they can try to minimise their risk exposure at each instance (while they find a seller)..
Of course some of these MMs/banks also have their own prop trading desks/traders, but the volume is typically very small (they don't do much forex speculation) compared to hedge funds and large private investors, corporates, even large retail traders.
and perhaps stop clearing isn't even done by MM, it's the private investors and hedge funds who are doing it, by selling large amounts into support and the stops that get tripped create even more selling. The MMs will panic and lower the bid prices because they are afraid support will break, at this time a large buy order will reverse price (as the panic ease - price has found liquidity.)
so perhaps instead of saying MM, the term should be BS (BUY SIDE)
** In fact, at each instance, the MM is probably both long and short many currencies, and his net exposure is likely to be almost zero (i.e. he is forced to constantly rebalance his holdings so that exposure stays very low, because they don't really take on price risk and their primary profit does not come from speculating on price.)
Honestly I don't think MM profit much from market movements, they mostly make profits from spreads or certain statistical strategies - this is just based on some traders working at MM who i talked to... Unless you are talking about hedge funds etc. that are on the buy side.
for example after news release/before price tends to spike because the MM don't want to take on additional risk, so they keep quoting higher and higher prices to clients who are trying to buy (hedge funds, institutions, large investors, retail) so that they can try to minimise their risk exposure at each instance (while they find a seller)..
Of course some of these MMs/banks also have their own prop trading desks/traders, but the volume is typically very small (they don't do much forex speculation) compared to hedge funds and large private investors, corporates, even large retail traders.
and perhaps stop clearing isn't even done by MM, it's the private investors and hedge funds who are doing it, by selling large amounts into support and the stops that get tripped create even more selling. The MMs will panic and lower the bid prices because they are afraid support will break, at this time a large buy order will reverse price (as the panic ease - price has found liquidity.)
so perhaps instead of saying MM, the term should be BS (BUY SIDE)
** In fact, at each instance, the MM is probably both long and short many currencies, and his net exposure is likely to be almost zero (i.e. he is forced to constantly rebalance his holdings so that exposure stays very low, because they don't really take on price risk and their primary profit does not come from speculating on price.)
Build good relationships with others.
hehe.
, so probably you know more about MMs than me. I'm just trying to exploit what I have found 
-tah
