Interest rates for major world currencies
The importance of central bank interest rates is unquestionable; their changes always move the currency pair trend in one direction or another. You can find out the interest rate for a specific currency using the informer below, which features the most interesting trading tools.
This indicator has a direct impact on the exchange rates of national currencies; to some extent, it regulates the availability of funds in the country's domestic market.
An increase in interest rates leads to higher borrowing costs and, consequently, to a rise in the national currency's exchange rate. Conversely, a decrease in interest rates allows commercial banks to issue cheaper loans, but at the same time, it depreciates the national currency.
Often, such a tool is used to combat inflation or to strengthen the state’s economy.
If you want to use interest rates as signals for opening Forex trades, you need to remember two simple rules:
A decrease in the indicator almost always leads to a depreciation of the currency, while at the same time serving to stimulate growth in the stock market.
An increase in the indicator is usually the basis for a shortage of funds and strengthening of the national currency.
Rate changes occur regularly, and they are announced in advance. Announcements of such changes are provided on the forex calendar . In addition to the date and time of the news release, the calendar typically includes expert predictions of the rate change and the likely impact on the exchange rate of the currency pair in question.
All you have to do is wait for the key interest rate to be released and open a trade in the right direction.
However, you should consider the impact of such news on the trend. There are several types of interest rates , but not all of them have the same impact on exchange rates.
