S
agbo samson ekre
@samson
Last seen:
3 days ago
Young aspirin trader
0 Followers
2 Following
Currency market operates 24hours a day across global financial hubs, driven largely by central bank policies, geopolitical events and national borrowing trends e.g 24hours market Structure
The role of news and central banks
Key trading mechanism
The impact of borrowing
3
Economic borrowing ranges from national government debt issuance to corporate and consumer borrowing. This is a primary engine driving exchange rates.
The currency pairs that are considered aa majors are the one that has base or quote aa the USD (U.S Dollar)
If you say, only news that affect the dominating or developed countries matter, why is that so, the third world countries like Nigeria too are having raw materials that we export and this developed countries turn into final materials for consumption and we the third world countries import it.
Why don’t the third world countries matter in terms of news?
When the US reserve cuts/ raises interest rates, the following happens
- the buying and spending slows down
- US dollar strengthens
- Asset markets face pressure
This happens when they raise the interest rate
- borrowing and spending rate increases
- US dollar weakens
- Risk asset Rally
This happens when Us reserve cuts rates
They affect currencies by
Capital flows and yield attraction
Forward looking expectations
The carry trade
The role of real rates
Showing 20 of 100+ replies.
Log in to see all replies