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Why are forex traders interest rates so important?
Uczestnik z Jul 09, 2020
20 postów
Jul 27, 2020 at 12:44
Uczestnik z Jul 09, 2020
20 postów
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
Uczestnik z Jul 27, 2020
102 postów
Jul 28, 2020 at 06:00
Uczestnik z Jul 27, 2020
102 postów
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
Uczestnik z May 05, 2020
17 postów
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.
Uczestnik z Jun 16, 2020
35 postów
Uczestnik z Jul 19, 2020
318 postów
Sep 09, 2020 at 12:45
Uczestnik z Jul 19, 2020
318 postów
Thank you fior this post. This will help all the new traders to make plans or strategies. Very useful post.
Uczestnik z Jul 20, 2020
298 postów
Oct 21, 2020 at 01:48
Uczestnik z Jul 20, 2020
298 postów
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.
Uczestnik z Aug 17, 2020
123 postów
Oct 21, 2020 at 18:17
Uczestnik z Aug 17, 2020
123 postów
The BabyPips explanation is indeed great. Following news about interest rates is an important part of fundamental analysis.
Uczestnik z Oct 05, 2020
40 postów
Nov 05, 2020 at 06:58
Uczestnik z Oct 05, 2020
40 postów
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
Uczestnik z Jan 10, 2020
28 postów
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.
Uczestnik z Oct 12, 2020
29 postów
Uczestnik z Mar 17, 2021
536 postów
Jul 04, 2021 at 09:03
Uczestnik z Mar 17, 2021
536 postów
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.
Uczestnik z Jul 23, 2020
869 postów
Jul 09, 2021 at 09:09
Uczestnik z Jul 23, 2020
869 postów
It influences the currency in the forex market. It is crucial for fundamental analysis.
Uczestnik z Dec 28, 2020
187 postów
Jul 19, 2021 at 05:23
Uczestnik z Dec 28, 2020
187 postów
Interest rates are important for the currency pairs as it helps the currency pair value to appreciate or depreciate. If you understand the importance of interest rate, then it will help to do fundamental analysis.
Uczestnik z Jun 15, 2021
13 postów
Uczestnik z Jun 17, 2021
9 postów
Jul 27, 2021 at 11:15
Uczestnik z Jun 17, 2021
9 postów
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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