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TTSMarkets (tts_markets)
Jul 28 2020 at 08:43
20 mensajes
The general rule is that, as interest rates rise, they tend to increase demand for the currency. Due to higher interest rates, major investors tend to follow fixed-rate currencies.

Yet interest rates don’t just exist. Investors also tend to consider various other aspects such as geopolitical factors, economy overall stability, etc. Interest rates in large developed economies have not increased higher than 3% in recent years.

But if you look at developing economies, you can see higher interest rates. Developing economies typically have interest rates of at least 5%, if not more.

One reason for this is that developing economies tend to attract investors. In exchange for higher interest rates, developing economies can use the money to spend on infrastructure or debt financing.

There’s also a risk with higher rates. Most developing economies have no stable geopolitical scenario compared to developed economies. This in itself creates investor risk.

Returning to developed economies where interest rates aren’t that high, even 2% is sometimes considered a good return.

Investors looking for lower risk, but a slightly higher reward tends to chase higher-rate currencies

ElbowMusic
Jul 28 2020 at 11:03
13 mensajes
With interest rates close to 0% in developed countries (and likely to stay that way for many years). Haven't interest rates lost their importance. It is the CHANGE in interest rates that can drive currency changes and as rates are expect to remain the same in all developing countries this is likely to have no impact on fx prices

TTSMarkets (tts_markets)
Jul 29 2020 at 08:31
20 mensajes
Thanks for your information
and keep with touch

ReaderTrimble33
Aug 10 2020 at 11:59
14 mensajes
Higher interest rates mean higher demand, and vice versa. I’ll remember that. Thanks for sharing.

Stonesong
Aug 12 2020 at 09:11
100 mensajes
In order to control the situation and further your profit, of course, you need to focus on interest rates.

Felhagamand
Aug 22 2020 at 08:44
25 mensajes
Thank you, this is really helpful information.

ElliotCooke
Nov 21 2020 at 19:15
341 mensajes
Interest rates help you to fix your profit margin. otherwise, you can not set your goal.

Elena Triston (ele020)
Dec 11 2020 at 10:55
120 mensajes
When there is a rate hike, the currency will appreciate, which means that traders will buy. And when there is a cut, traders will sell and buy currencies with higher interest rates. Once a trader has determined the market movement, it is crucial to place the trade carefully

The more your practice, the more you learn.
DoraWalletInvest
Dec 14 2020 at 05:34
123 mensajes
The modification of interest rates also have an impact on the economy. Lower interest rates can stimulate the economy as it is cheaper to borrow money. Higher interest rates do the opposite and this way they play a role in controlling inflation.

Dec 16 2020 at 21:23
4 mensajes
I think the vast majority of traders on MyFxBook are day traders, and interest rates would not be much of a factor at all for those. My trades are a few minutes to one hour long.

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