210711 Resource 119235 120646 120646 1218204284922 1218204284922 Controlled Interest Rates and Currency Trading

FX market and interest rates

<font size="2"><span style="font-family: verdana,arial,helvetica,sans-serif;">The last few days, there has been a lot of focus on interest rates. This is because interest rates can affect what goes on in currency trading on the FX market. Interest rate decisions are always watched carefully.</span><br style="font-family: verdana,arial,helvetica,sans-serif;" /><br style="font-family: verdana,arial,helvetica,sans-serif;" /><span style="font-weight: bold; font-family: verdana,arial,helvetica,sans-serif;"><span style="font-weight: bold;">Why forex traders watch interest rates</span></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;">Forex traders watch interest rates because they are indicators of how the economy is doing. When an economy is strong, its currency is usually strong as well. Likewise, a weak economy usually leads to a weak currency.</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;">Interest rates indicate the direction an economy is going. A hike in interest rates usually means that an economy is gaining in strength. It is expanding, and the higher interest rates keep inflation in check. Higher interest rate usually boost the currecny 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;">Lower interest rates, on the other hand, imply that the economy needs stimulation to help it growing. This damages the currency in FX trading.</span></font><span style="font-weight: bold;"><span style="font-weight: bold;"></span><br /></span> 9 application/xml false currency FX market currency trading currency trading FX market economy forex traders FX market interest rates FX trading interest rates Resources for forex traders http://www.gftforex.com/land/index.asp?aid=446 Mozilla/5.0 (Macintosh; U; Intel Mac OS X; en-US; rv:1.8.1.16) Gecko/20080702 Firefox/2.0.0.16 127.0.0.1 127.0.0.1 mmarquit 66.182.71.18 false true false false true 119235 blog blogsite/GFTForex/web