elias mazariegos
Member
The most obvious and simple example would be the interest rates established by the national bank of each country in the world. As the US dollar, the euro, the pound sterling and the Japanese yen are the most operated currencies in the world.
The Federal Reserve, the European Central Bank, the Bank of England and the Bank of Japan are, respectively, the "big shots" of the ocean.
Understanding how all this can affect the economy will help you understand how the Forex market works.
When interest rates rise, which only national banks can do, it is more expensive for market participants to borrow that currency from the central bank. Momentarily, this causes a shortage in the supply of the currency and drives its price upwards.
Comunidad
The Federal Reserve, the European Central Bank, the Bank of England and the Bank of Japan are, respectively, the "big shots" of the ocean.
Understanding how all this can affect the economy will help you understand how the Forex market works.
When interest rates rise, which only national banks can do, it is more expensive for market participants to borrow that currency from the central bank. Momentarily, this causes a shortage in the supply of the currency and drives its price upwards.
Comunidad
