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Why are forex traders interest rates so important?
Medlem sedan Jul 09, 2020
20 inlägg
Jul 27, 2020 at 12:44
Medlem sedan Jul 09, 2020
20 inlägg
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 27, 2020 at 14:37
Medlem sedan Jul 27, 2020
81 inlägg
The forex market is ruled by global interest rates. They are probably the most important factor in determining the perceived value of a currency.
Medlem sedan Jul 27, 2020
102 inlägg
Jul 28, 2020 at 06:00
Medlem sedan Jul 27, 2020
102 inlägg
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
Medlem sedan May 05, 2020
17 inlägg
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.
Medlem sedan Jul 19, 2020
318 inlägg
Sep 09, 2020 at 12:45
Medlem sedan Jul 19, 2020
318 inlägg
Thank you fior this post. This will help all the new traders to make plans or strategies. Very useful post.
Sep 09, 2020 at 13:30
Medlem sedan Jan 10, 2020
28 inlägg
hello sir.
i'm newbie here. what is interest rate? where can i see it?
thank you sir.
i'm newbie here. what is interest rate? where can i see it?
thank you sir.
Medlem sedan Jul 20, 2020
298 inlägg
Oct 21, 2020 at 01:48
Medlem sedan Jul 20, 2020
298 inlägg
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.
Medlem sedan Aug 17, 2020
123 inlägg
Oct 21, 2020 at 18:17
Medlem sedan Aug 17, 2020
123 inlägg
The BabyPips explanation is indeed great. Following news about interest rates is an important part of fundamental analysis.
Medlem sedan Oct 05, 2020
40 inlägg
Nov 05, 2020 at 06:58
Medlem sedan Oct 05, 2020
40 inlägg
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 08:16
Medlem sedan Nov 05, 2020
54 inlägg
In order to create your trading profitable enough, of course, interest rates can be taken into account.
Nov 05, 2020 at 08:55
Medlem sedan Jan 10, 2020
28 inlägg
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.
Nov 06, 2020 at 12:22
Medlem sedan Oct 23, 2020
37 inlägg
Interest rates are significant in the forex market. This is because they influence the value of currencies and have a significant impact on the market.
Medlem sedan Mar 17, 2021
536 inlägg
Jul 04, 2021 at 09:03
Medlem sedan Mar 17, 2021
536 inlägg
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.
Medlem sedan Jul 23, 2020
869 inlägg
Jul 09, 2021 at 09:09
Medlem sedan Jul 23, 2020
869 inlägg
It influences the currency in the forex market. It is crucial for fundamental analysis.
Jul 14, 2021 at 05:13
Medlem sedan Feb 16, 2021
29 inlägg
I began to understand the importance of this moment when I listened to the analytical review and recommendations from the broker.
Medlem sedan Dec 28, 2020
187 inlägg
Jul 19, 2021 at 05:23
Medlem sedan Dec 28, 2020
187 inlägg
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.
Medlem sedan Jun 17, 2021
9 inlägg
Jul 27, 2021 at 11:15
Medlem sedan Jun 17, 2021
9 inlägg
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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