DELSU MTL COMMUNITY

Thesame with me ... when I start newly I seems to love them but not I Don't again.

Okay... I have a question ...

In a situation whereby two different currency have thesame interest rate which among the two pairs do you think investor will seems to invest on. Example sth like USD and GBP have thesme interest rate .

Well, this is rare sha

But if such a thing happens, then other economic indicators should be used to gauge market sentiment, because although the interest rates are the same, other factors such as unemployment rate, NFP, CPI and even PPI will determine the strength of one currency relative to another

Come to think of it sef,

Looking back, a lot of unexpected and massive price dips have been happening on all JPY pairs

Like, it's mostly rampant in those pairs

But if such a thing happens, then other economic indicators should be used to gauge market sentiment, because although the interest rates are the same, other factors such as unemployment rate, NFP, CPI and even PPI will determine the strength of one currency relative to another

Yeah... all those high impact news have been having great impact on those pairs

Okay... yeah yeah . I agree with on this one bro.

Actually USD and GBP have thesame bank rate cut. I think it is on forex factory website. Nah what made me asked such question

Just avoid those pairs once u see there's a BOJ news release

GM traders 🐦‍🔥

Today's topic of interest: Interest rates

Noe, interest rates refers to the amour paid or owed for owning a particular currency

Noe, interest rates refers to the amour paid or owed for owning a particular currency

In a currency pair such as GBPJPY, if GBP has a higher interest rate than JPY, then investors including those from Japan will drift to GBP

This will increase the value of GBP relative to JPY(which will depreciate)

Noe, interest rates refers to the amour paid or owed for owning a particular currency

News on interest rates are very critical when determining the economic situation of a Country and the fate of it's currency

As a general rule, if a currency has a high interest rate or raises it, that will attract investors to invest in that currency or buy it's assets. Hence this will strengthen the currency

I have a question sir ... the AUD bank interest rate cut is higher than USD own but why is USD tends to have more dominance than AUD.

A lot of reasons, one of the major reason is that most of the world's currency reserves is in USD.