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MT4: how to change "EURUSD" to "#EURUSD"? 3 replies
Re: EurUsd short term 15 replies
did oanda just drop its spread for eurusd to 1 pip? 11 replies
EA for multiple lot limit order for EURUSD 0 replies
NFP nice bump up on EURUSD 2 replies
Disliked{quote} Here you go, the rest you will have to do some research, go back to 2011, or 2013 and see how they were hiking rates, you are looking at "federal fund effective rates" which is now i think 0.08, what you want to look for is interest rate which is 0.25 now. {image}Ignored
Disliked{quote} no they weren't hiking rates the fed control the fed funds so what rate are you talking aboutIgnored
Disliked{quote} You are confusing federal fund effective rate with interest rates. They are different. I will not stretch this conversation further, because you are not understanding macroeconomics yet, you can't even tell the difference between federal fund effective rate and interest rates, two different scenarios. When the fed is talking about hiking rates they mean the interest rate which is 0.25 now, not the federal fund effective rate. Interest rate have impact on currencies. That is why when they talk about hiking rates, tapering, and so on, in this...Ignored
Disliked{quote} You are confusing federal fund effective rate with interest rates. They are different. I will not stretch this conversation further, because you are not understanding macroeconomics yet, you can't even tell the difference between federal fund effective rate and interest rates, two different scenarios. When the fed is talking about hiking rates they mean the interest rate which is 0.25 now, not the federal fund effective rate. Interest rate have impact on currencies. That is why when they talk about hiking rates, tapering, and so on, in this...Ignored
Disliked{quote} you don;'t know how rates work ,I never said higher rates don't affect the currency at all ,actually it has always been a major factorIgnored
DislikedI don't know what you're talking about the different rates I haven't quote any ,I know it to be as good a 0% but there is a band they operate in . The only interest rate the fed control is the fed funds overnight ,the rest is free market less qe if there is any . The Effective Federal Funds Rate (EFFR) is calculated as the effective median interest rate of overnight federal funds transactions during the previous business day. It is published daily by the Federal Reserve Bank of New York.[3]...Ignored
What is the Federal Reserve responsible for controlling?
The U.S. central banking system—the Federal Reserve, or the Fed—is the most powerful economic institution in the United States, perhaps the world. Its core responsibilities include setting interest rates, managing the money supply, and regulating financial markets.
Now go learn macroeconomics and do not talk about it until you understand it. Which you do not so far. You are confusing yourself, and you will start confusing new traders that want to learn macroeconomics.
Disliked{quote} Federal Discount Rate vs. Federal Funds Rate The federal discount rate is the interest rate the Fed charges on loans. It is not to be confused with the federal funds rate, which is the rate banks charge each other for loans that are used to hit reserve requirements. KEY TAKEAWAYS The federal discount rate is the interest rate the Federal Reserve (Fed) charges banks to borrow funds from a Federal Reserve bank. The Fed discount rate is set by the Fed's board of governors,...Ignored
Disliked{quote} Federal Discount Rate vs. Federal Funds Rate The federal discount rate is the interest rate the Fed charges on loans. It is not to be confused with the federal funds rate, which is the rate banks charge each other for loans that are used to hit reserve requirements. KEY TAKEAWAYS The federal discount rate is the interest rate the Federal Reserve (Fed) charges banks to borrow funds from a Federal Reserve bank. The Fed discount rate is set by the Fed's board of governors,...Ignored
Dislikedspoiler alert the free market price all interest rates while the fed control an overnight rate ,which is basically 0% right now QE holds these rates down as they taper this will go up ,which is exactly what I said all along ,thats the problem with the tapering to 0 that fast imo {image}Ignored
The Federal Reserve, America's central bank, is responsible for conducting monetary policy and controlling the money supply. The primary tools that the Fed uses are interest rate setting and open market operations (OMO).
The U.S. central banking system—the Federal Reserve, or the Fed—is the most powerful economic institution in the United States, perhaps the world. Its core responsibilities include setting interest rates, managing the money supply, and regulating financial markets.
Quantitative easing is when we buy bonds to lower the interest rates on savings and loans.
What is QE and how does it work?
Quantitative Easing (QE) is a type of non-traditional monetary policy in which a central bank buys a large number of securities to stimulate the economy. When QE works well, the increase in the money supply encourages lending, lowers interest rates, and results in economic growth.
KEY TAKEAWAYS
KEY TAKEAWAYS
Bond yields differentials usually move in tandem with currency pairs. This phenomenon occurs because capital flows are attracted to higher yielding currencies. As the rate of one currency increases relative to another, investors are attracted to the higher yielding currency.
Rising yields can create capital losses in the short-term, but can set the stage for higher future returns. When interest rates are rising, you can purchase new bonds at higher yields. Over time the portfolio earns more income than it would have if interest rates had remained lower.
Yield goes up, currency goes up, interest rate rise, yield rise, currency rise.
KEY TAKEAWAYS