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Post Why should you as a trader pay attention to interest rates?
tts_markets

Пользователь с Jul 09, 2020  20 сообщений TTSMarkets (tts_markets) Jul 28 at 08:43
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

Пользователь с Mar 22, 2018  13 сообщений ElbowMusic Jul 28 at 11:03
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

tts_markets

Пользователь с Jul 09, 2020  20 сообщений TTSMarkets (tts_markets) Jul 29 at 08:31
Thanks for your information
and keep with touch

ReaderTrimble33

Пользователь с Jun 17, 2020  7 сообщений ReaderTrimble33 Aug 10 at 11:59
Higher interest rates mean higher demand, and vice versa. I’ll remember that. Thanks for sharing.

Stonesong

Пользователь с May 13, 2020  80 сообщений Stonesong Aug 12 at 09:11
In order to control the situation and further your profit, of course, you need to focus on interest rates.

Felhagamand

Пользователь с May 14, 2019  22 сообщений Felhagamand Aug 22 at 08:44
Thank you, this is really helpful information.

ElliotCooke

Пользователь с Jul 20, 2020  227 сообщений ElliotCooke Nov 21 at 19:15
Interest rates help you to fix your profit margin. otherwise, you can not set your goal.

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