189118 Resource 119247 120646 120646 1194615795281 1194615795281 Controlled Forex Trading Strategy: Interest Rates

Interest rates play a role in currency trading

<font size="2"><span style="font-family: verdana,arial,helvetica,sans-serif;">When formulating forex trading strategy, it can be a good idea to look at interest rates. Interest rates play a role in currency trading, usually as an indicator of the underlying fundamentals of an economy. Interest rates and interest rate differentials can help a currency on the FX market. </span><br style="font-family: verdana,arial,helvetica,sans-serif;" /><br style="font-family: verdana,arial,helvetica,sans-serif;" /><span style="font-family: verdana,arial,helvetica,sans-serif;">When interest rates go up in a country, its currency usually rises as well. Rising interest rates are a sign that an economy is expanding, as they are used to slow inflation.</span><a href="http://today.reuters.com/news/articleinvesting.aspx?type=usDollarRpt&storyID=2007-11-09T084927Z_01_L09215016_RTRIDST_0_MARKETS-FOREX-UPDATE-3.XML" target="_blank" title="interest rates currency trading, currency trading, FX market, forex trading, forex trading strategy, forex strategy interest rates, rising interest rates" style="font-family: verdana,arial,helvetica,sans-serif;"> Reuters offers this example of interest rates and currency trading</a><span style="font-family: verdana,arial,helvetica,sans-serif;">:</span><br style="font-family: verdana,arial,helvetica,sans-serif;" /><br style="font-family: verdana,arial,helvetica,sans-serif;" /></font><div style="margin-left: 40px; font-style: italic;"><font size="2"><span style="font-family: verdana,arial,helvetica,sans-serif;"> &quot;With the Bank of England on hold yesterday and ... at the same time those downside warnings from Bernanke on growth, the market continue to anticipate additional Fed cuts, so those interest rates spreads continue to work against the dollar,&quot; said Jeremy Stretch,</span></font> currency strategist at Rabobank.</div> 9 application/xml false currency trading forex strategy interest rates forex trading forex trading strategy FX market interest rates currency trading rising interest rates Currency trading with GFT http://www.gftforex.com/land/index.asp?aid=446 Interest rates play a role in currency trading, usually as an indicator of the underlying fundamentals of an economy. Mozilla/5.0 (Macintosh; U; PPC Mac OS X Mach-O; en-US; rv:1.8.1.9) Gecko/20071025 Firefox/2.0.0.9 127.0.0.1 127.0.0.1 mmarquit false true false false true 119247 blog blogsite/GFTForex/web