Why are forex traders interest rates so important?
Membro Desde Jul 09, 2020
20 posts
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
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
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
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.
Membro Desde Jun 16, 2020
35 posts
Aug 06, 2020 at 11:35
Interest rates matter the most. Economic factors cause them to increase and fall, which ultimately impacts trading.
Membro Desde Jul 19, 2020
318 posts
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.
Membro Desde Jul 20, 2020
298 posts
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.
Membro Desde Aug 17, 2020
123 posts
Oct 21, 2020 at 18:17
The BabyPips explanation is indeed great. Following news about interest rates is an important part of fundamental analysis.
Membro Desde Oct 05, 2020
40 posts
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.
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.
Membro Desde Oct 12, 2020
29 posts
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.
Membro Desde Mar 17, 2021
536 posts
Jul 04, 2021 at 09:03
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.
Membro Desde Jul 23, 2020
869 posts
Jul 09, 2021 at 09:09
It influences the currency in the forex market. It is crucial for fundamental analysis.
Membro Desde Jun 15, 2021
13 posts
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
Membro Desde Jun 17, 2021
9 posts
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
