Any currency is issued and controlled by governments; however, some of the latest currencies like Bitcoin are being issued by no governments and thus not controlled by any authority. For the greater understanding we are not including Bitcoin but the traditional currencies that are run of the mill. It must be noted that a currency does not have a set price; rather, it fluctuates a lot depending upon market forces.
Currency does not also have a suggested retail price or a manufactures price; rather, these are valued according to the national economy of the concerned country. From the Second World War to 1971, it was the gold standard, meaning that these were actually made from gold so they had a marketable known value around the world.
However, later on when the U.S. decided to abandon the gold standard, the USD became a fiat. Fiat fluctuates a lot as global trade markets fare. There are various central banks which track and calculate the value of one currency against another and often interfere when their respective currencies are affected.
Once currencies went off the gold standard, countries agreed for market based value of their currencies and free flow of currencies amongst the central banks, governments and business; however, today nearly 20% of the transactions are for actual use as opposed to 80% of the currency exchange which is being used by traders and investors.
Expanding Forex Market
Thanks to international trade, the requirement for foreign currencies increased a lot and that also generated the brokers that offered foreign exchange services. Today, in foreign exchange there are a lot of professionals are day traders, speculators, long term traders, and others.
As each trader or investor hopes that the markets move in their favor so that he can profit; he must understand that there is a loser for every winner. To become a successful trader you must have strong fundamentals and read the latest Forex news as well as know about technical analysis, fundamental analysis, Forex tools, Forex news and more.
You need to do fundamental analysis which is based on news, information, facts, reports, and data which you collect from various sources. You can get a lot of information from government economic data and reports for free of cost.
However, some information and tools are paid; you need to pay to access them e.g. Forex tools like profit & loss calculator, pivot point indicators.