International Fisher Effect

Does anyone use this?

I got this from Investopedia.com. Here is the link.

What Does International Fisher Effect - IFE Mean?
An economic theory that states that an expected change in the current exchange rate between any two currencies is approximately equivalent to the difference between the two countries' nominal interest rates for that time.

Here is a link to an interest rate table.

Are the rates in that table nominal or real?

interest rates are part of it but I think that theory needs a big 'HOLD EVERYTHING ELSE CONSTANT' sign over it.

price is a function of many many variables.

The table should state nominal interest rates

Interest rate parity tends to hold in the long run. However, in the medium and short run, exchange rates can greatly deviate from IRP. You ask if we use this in our trading. I don't, because IRP is like a no-arbitrage condition. The interest spread you receive or pay, is offset by an expected change in the exchange rate. (Not to mention that most retail brokers skew the swaps they charge/pay in their favor)

This mechanism also explains why carry trades, by itself, don't provide an edge.

except that some people are good at it...