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Why are forex traders interest rates so important?
Membre depuis Jul 09, 2020
posts 20
Jul 27, 2020 at 12:44
Membre depuis Jul 09, 2020
posts 20
When it comes to forex markets, there’s one factor that trumps anything else. Many people may think economic indicators can greatly move markets. Of course, you’ll often see stories about wages, prices, etc. making a big impact.
Interest rates, however, play a major role in these market movements. Looking at it, a job report may have a big impact on FX currency pairs. But it has such an impact because of how the report can influence interest rates.
Central bankers meet almost once a month (depends on schedule from one central bank to another). The central bank’s monetary policymaking staff assesses the economy at such meetings.
Assessment requires wages, labor market, GDP growth, etc. As you can see, these economic indicators tend to influence decision-making.
Thus, while economic indicators might seem to have a big impact in one way, the reason behind this impact is how they can shift interest rate expectations.
thnak you
Interest rates, however, play a major role in these market movements. Looking at it, a job report may have a big impact on FX currency pairs. But it has such an impact because of how the report can influence interest rates.
Central bankers meet almost once a month (depends on schedule from one central bank to another). The central bank’s monetary policymaking staff assesses the economy at such meetings.
Assessment requires wages, labor market, GDP growth, etc. As you can see, these economic indicators tend to influence decision-making.
Thus, while economic indicators might seem to have a big impact in one way, the reason behind this impact is how they can shift interest rate expectations.
thnak you
Jul 28, 2020 at 06:00
Membre depuis Jul 27, 2020
posts 102
There is actually perfect explanation in here: https://www.babypips.com/learn/forex/interest-rates-101
Hope this helps.
Hope this helps.
Jul 29, 2020 at 18:04
Membre depuis May 05, 2020
posts 17
It's actually a very interesting and a bit complicated topic. I thought about it for a long time too and read some articles on the subject. But the best way to find answers to this question is on the babypips site. I liked this article very much too.
Membre depuis Jun 16, 2020
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Oct 21, 2020 at 01:48
Membre depuis Jul 20, 2020
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Trading is a business around the world. Currencies of different countries are traded in Forex. And depending on these currencies understand the economic situation of each country. The interest rate is an economic condition that can make a currency strong and weak.
Membre depuis Aug 17, 2020
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Membre depuis Oct 05, 2020
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Nov 05, 2020 at 06:58
Membre depuis Oct 05, 2020
posts 40
The interest rates are important in forex because when the interest rates rise, the price of the national currency also rises and that currency gains value in the foreign exchange markets. The interest rates play a vital role and are important in the market movements.
Nov 05, 2020 at 08:55
Membre depuis Jan 10, 2020
posts 28
stevenflam posted:
Interest rates do play an important role in the market and they also determine the value of different currencies. There are some economic factors that influence these interest rates. They have a significant impact on trading.
hello sir.
please assist, nobody can help me on this thread.
how can interest rates determine the value of different currencies?
thank you in advance.
Membre depuis Oct 12, 2020
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Jul 04, 2021 at 09:03
Membre depuis Mar 17, 2021
posts 536
stevenflam posted:Yes. It also plays an important role on making profit.
Interest rates do play an important role in the market and they also determine the value of different currencies. There are some economic factors that influence these interest rates. They have a significant impact on trading.
Membre depuis Jul 23, 2020
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Jul 27, 2021 at 11:15
Membre depuis Jun 17, 2021
posts 9
it is important to remember that it is the PREDICTION of interest rate changes that drives FX price changes. This is why all the other economic data moves the markets - it provides an early indication of how interest rates may change. So when rates actually change there may be only be a small change in price because the change is priced in
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