Changing expectations about interest rates are the No. 1 mover of currencies. The broader market mood has an impact on specific currencies – mostly $USD and $JPY. Flows related to imports and exports play a minor role in moving currencies by forexcrunch
rise, the dollar and yen tend to drop, and the other way around. The third factor is the flows of imports and exports, but it plays a minor role.The longer answer is that every factor that has an impact on interest rates triggers speculation among investors. For example, if inflation figures come out stronger than estimates, speculation about higher interest rates emerges. Toor refrain from cutting interest rates. In turn, the currency rises.
However, it is essential to remember that such import and export flows play a minor role in currency trading. The vast majority of price action is related to speculation about interest rates and the broader market mood. Only when everything is eerily quiet, do currencies respond to flows. In the example above, it would take an extreme "slow news day" to pushSpeculation about interest rates, the market mood, and to a far lesser extent flows, move currencies.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
15 Figure Skating Jumps, Spins, and Other Moves, ExplainedAn explainer on the most common figure skating moves, including figure skating jumps like the salchow and lutz, and partnered elements like twizzles.
Read more »
Here are Warren Buffett's latest moves, including increasing this energy bet by more than a thirdHere's a complete breakdown of the legendary investor's latest moves.
Read more »
Bitso Expands to Colombia Amidst Growing Cryptocurrency Adoption in the Country – Emerging Markets Bitcoin NewsBitso, a Mexico-based cryptocurrency exchange, is expanding into the Colombian market in the midst of a growing interest in crypto.
Read more »
The top 10 best new attractions across the U.S. include a very Van Gogh entryUSA Today’s 10Best feature recently ranked the best tourist attractions to open in the last year, a list that includes three spectacular museums, a stadium tour and a couple of very familiar …
Read more »
Bitcoin Exchange Reserves Crash to Three-Year Low: DetailsICYMI: Bitcoin reserves on centralized crypto exchanges have made a drop to a lowest level in three years BTC $BTC
Read more »
Lavrov tells Putin of 'chance' of deal with West over Ukraine crisisDespite warnings from US, UK and elsewhere that Russian troops could move on Ukraine as soon as Wednesday, carefully choreographed meeting between President Putin and his Foreign Minister Sergey Lavrov suggests otherwise.
Read more »