How can Supply and Demand Fluctuations be caused by?

-Speculation: People buy and sell currencies based on Changes they Expect are going to Happen -Official Buying and Selling of Currency by Government or Central Bank -Relative Inflation Rates. If Inflation is Higher than Competitors then the Value of its Currency will Fall making Prices less Competitive. Exports will Fall and Imports will rise leading to Less Demand for the Currency and more Supply -Relative Interest Rates. High Rates Increases Demand for Currency due to Hot Money inflows -Confidence in the State of the Economy If People are Worried, then they may not hold Currencies in that Economy -Trade Flows. If a Nation has a High Exports than Imports, then Demand for the Currency will be Higher, leading to an Appreciation