I have been hunting around on the net trying to find a basic explanation of how interest rates affect Forex prices?
I know it’s a complex issue, but I feel that having a better understanding even basicwill be a bonus to my tech analysis. It’s always about looking at the bigger picture I’ve learned.
For example the ECB Rate hike market expectation what effect will it have on the EURUSD?
If the rate is increased, does that encourage buying and visa versa if the rate is decreased - encourages selling.
Any help would be appreciated.
Thanks
I know it’s a complex issue, but I feel that having a better understanding even basicwill be a bonus to my tech analysis. It’s always about looking at the bigger picture I’ve learned.
For example the ECB Rate hike market expectation what effect will it have on the EURUSD?
If the rate is increased, does that encourage buying and visa versa if the rate is decreased - encourages selling.
Any help would be appreciated.
Thanks