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Effect of Interest Rates on the Forex Market

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zanurreload

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In the forex market, currencies from all over the world are traded and exchanged. For example, a broker can buy Japanese Yen when the Yen to US Dollar ratio rises and sells Yen and buys US Dollars to take profits.

Forex market today is open to everyone, not only those with large capital. Everyone, even with small capital, may exchange and trade currencies from any country offered in the market to take advantage of the currency's value movements

Actually, economic and political conditions also greatly affect the value of currencies, but the interest rate has a greater influence. The basic thing to remember is that money often follows the interest rate. When the interest rate of a country's currency increases, investors will tend to want to take advantage of that high return; and as a result, money (capital) will flow to that country.

When the interest rate rises one country, their currency is seen as stronger than other currencies. This happens because investors are looking for currencies with higher interest rates to get even bigger profits. Just so you know, changes in interest rates can have a significant impact on the forex market. You can take advantage of taking actions that are in line with them.


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#1 - March 22, 2019, 01:31:07 AM

fathurcom

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Interest rates are very influential in price movements. we don't underestimate interest rates
#2 - March 25, 2019, 11:19:30 AM

MonsterFX

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Quote from: zanurreload on March 22, 2019, 01:31:07 AM
In the forex market, currencies from all over the world are traded and exchanged. For example, a broker can buy Japanese Yen when the Yen to US Dollar ratio rises and sells Yen and buys US Dollars to take profits.

Forex market today is open to everyone, not only those with large capital. Everyone, even with small capital, may exchange and trade currencies from any country offered in the market to take advantage of the currency's value movements

Actually, economic and political conditions also greatly affect the value of currencies, but the interest rate has a greater influence. The basic thing to remember is that money often follows the interest rate. When the interest rate of a country's currency increases, investors will tend to want to take advantage of that high return; and as a result, money (capital) will flow to that country.

When the interest rate rises one country, their currency is seen as stronger than other currencies. This happens because investors are looking for currencies with higher interest rates to get even bigger profits. Just so you know, changes in interest rates can have a significant impact on the forex market. You can take advantage of taking actions that are in line with them.
The news release of interest rates from central banks will be awaited by traders, because usually the news release has a considerable impact on the market, so traders like to trade at this moment.
#3 - March 26, 2019, 02:45:52 AM

smk9

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Quote from: zanurreload on March 22, 2019, 01:31:07 AM
In the forex market, currencies from all over the world are traded and exchanged. For example, a broker can buy Japanese Yen when the Yen to US Dollar ratio rises and sells Yen and buys US Dollars to take profits.

Forex market today is open to everyone, not only those with large capital. Everyone, even with small capital, may exchange and trade currencies from any country offered in the market to take advantage of the currency's value movements

Actually, economic and political conditions also greatly affect the value of currencies, but the interest rate has a greater influence. The basic thing to remember is that money often follows the interest rate. When the interest rate of a country's currency increases, investors will tend to want to take advantage of that high return; and as a result, money (capital) will flow to that country.

When the interest rate rises one country, their currency is seen as stronger than other currencies. This happens because investors are looking for currencies with higher interest rates to get even bigger profits. Just so you know, changes in interest rates can have a significant impact on the forex market. You can take advantage of taking actions that are in line with them.
when there is an interest rate announcement the market will usually move quickly
#4 - March 30, 2019, 10:03:03 AM

ariezz

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Quote from: zanurreload on March 22, 2019, 01:31:07 AM
In the forex market, currencies from all over the world are traded and exchanged. For example, a broker can buy Japanese Yen when the Yen to US Dollar ratio rises and sells Yen and buys US Dollars to take profits.

Forex market today is open to everyone, not only those with large capital. Everyone, even with small capital, may exchange and trade currencies from any country offered in the market to take advantage of the currency's value movements

Actually, economic and political conditions also greatly affect the value of currencies, but the interest rate has a greater influence. The basic thing to remember is that money often follows the interest rate. When the interest rate of a country's currency increases, investors will tend to want to take advantage of that high return; and as a result, money (capital) will flow to that country.

When the interest rate rises one country, their currency is seen as stronger than other currencies. This happens because investors are looking for currencies with higher interest rates to get even bigger profits. Just so you know, changes in interest rates can have a significant impact on the forex market. You can take advantage of taking actions that are in line with them.
many things affect price movements in the forex market but indeed interest rates are often a concern of traders but we also have to be careful because the effects of news regarding interest rates can be extraordinary and sometimes also not in line with the results.
#5 - March 30, 2019, 11:06:55 AM

dafa

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I always avoid trading when there is an interest rate announcement, because at that time the market will usually move with high volatility.
#6 - March 30, 2019, 11:45:34 PM

ariffx

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Yes, indeed, if we pay attention to the interest rates of each pair, it's quite fortunate, also if the swap is positive. if the results of tradingx profit can be paid, if the loss is also more reduced the loss load. Actually, how do you trade like that? Then do all brokers allow trading methods like that?
#7 - April 01, 2019, 05:18:09 AM

narmada

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is the interest rate only announced once a month?
#8 - April 01, 2019, 06:03:37 AM

zanurreload

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Quote from: narmada on April 01, 2019, 06:03:37 AM
is the interest rate only announced once a month?
yes ... usually the state announces interest rates in one month.
#9 - April 02, 2019, 02:15:56 AM

keruak90

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yes.. i agree with you.. Interest rate is very infortent in trading forex..
#10 - April 17, 2019, 11:05:22 AM

Fxortrader

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Quote from: keruak90 on April 17, 2019, 11:05:22 AM
yes.. i agree with you.. Interest rate is very infortent in trading forex..
all forex trading has an effect on interest rates,
#11 - April 17, 2019, 12:34:42 PM

Fadeel99

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Quote from: zanurreload on March 22, 2019, 01:31:07 AM
In the forex market, currencies from all over the world are traded and exchanged. For example, a broker can buy Japanese Yen when the Yen to US Dollar ratio rises and sells Yen and buys US Dollars to take profits.

Forex market today is open to everyone, not only those with large capital. Everyone, even with small capital, may exchange and trade currencies from any country offered in the market to take advantage of the currency's value movements

Actually, economic and political conditions also greatly affect the value of currencies, but the interest rate has a greater influence. The basic thing to remember is that money often follows the interest rate. When the interest rate of a country's currency increases, investors will tend to want to take advantage of that high return; and as a result, money (capital) will flow to that country.

When the interest rate rises one country, their currency is seen as stronger than other currencies. This happens because investors are looking for currencies with higher interest rates to get even bigger profits. Just so you know, changes in interest rates can have a significant impact on the forex market. You can take advantage of taking actions that are in line with them.
for that, how can I trade by seeing the turmoil that is happening to the country we are trading in, sir? Thanks
#12 - April 18, 2019, 09:12:56 PM

jafar

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if there is an interest rate announcement, I always avoid trading, because the direction of the market is difficult to predict
#13 - April 19, 2019, 01:29:00 PM

zanurreload

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Quote from: jafar on April 19, 2019, 01:29:00 PM
if there is an interest rate announcement, I always avoid trading, because the direction of the market is difficult to predict
I support that. If you feel when the interest rate announcement is a dangerous time for trading, then you should avoid it. But for me when the interest rate announcement is an interesting time for trading
#14 - April 19, 2019, 09:58:19 PM

Galen

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for the moment I think the announcement of interest likes is more awaited by traders than NFP
#15 - May 07, 2019, 09:13:26 AM
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