Why are forex traders interest rates so important?

Jul 27, 2020 at 12:44
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21 Replies
会员从Jul 09, 2020开始   20帖子
Jul 27, 2020 at 12:44
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
会员从Jul 27, 2020开始   81帖子
Jul 27, 2020 at 14:37
The forex market is ruled by global interest rates. They are probably the most important factor in determining the perceived value of a currency.
会员从Jul 27, 2020开始   102帖子
Jul 28, 2020 at 06:00
There is actually perfect explanation in here: https://www.babypips.com/learn/forex/interest-rates-101
Hope this helps.
会员从May 05, 2020开始   17帖子
Jul 29, 2020 at 18:04
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.
会员从Jun 16, 2020开始   35帖子
Aug 06, 2020 at 11:35
Interest rates matter the most. Economic factors cause them to increase and fall, which ultimately impacts trading.
会员从Jul 19, 2020开始   318帖子
Sep 09, 2020 at 12:45
Thank you fior this post. This will help all the new traders to make plans or strategies. Very useful post.
会员从Jan 10, 2020开始   28帖子
Sep 09, 2020 at 13:30
hello sir.

i'm newbie here. what is interest rate? where can i see it?
thank you sir.
会员从Jul 20, 2020开始   298帖子
Oct 21, 2020 at 01:48
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.
会员从Aug 17, 2020开始   123帖子
Oct 21, 2020 at 18:17
The BabyPips explanation is indeed great. Following news about interest rates is an important part of fundamental analysis.
会员从Oct 05, 2020开始   40帖子
Nov 05, 2020 at 06:58
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.
会员从Nov 05, 2020开始   54帖子
Nov 05, 2020 at 08:16
In order to create your trading profitable enough, of course, interest rates can be taken into account.
会员从Jan 10, 2020开始   28帖子
Nov 05, 2020 at 08:55
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.
会员从Oct 23, 2020开始   37帖子
Nov 06, 2020 at 12:22
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.
会员从Oct 12, 2020开始   29帖子
Nov 26, 2020 at 07:28
I consider forex trading as a business. It has given me so much in life and has also made my life easier than before.
会员从Mar 17, 2021开始   536帖子
Jul 04, 2021 at 09:03
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.
Yes. It also plays an important role on making profit.
会员从Jul 23, 2020开始   869帖子
Jul 09, 2021 at 09:09
It influences the currency in the forex market. It is crucial for fundamental analysis.


会员从Feb 16, 2021开始   29帖子
Jul 14, 2021 at 05:13
I began to understand the importance of this moment when I listened to the analytical review and recommendations from the broker.
会员从Dec 28, 2020开始   187帖子
Jul 19, 2021 at 05:23
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.
会员从Jun 15, 2021开始   13帖子
Jul 27, 2021 at 10:59
Interests saves you a lot of money and helps as an addition to your gains ,it drives the the value of the currency
会员从Jun 17, 2021开始   9帖子
Jul 27, 2021 at 11:15
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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