Are Central Banks Major Players In The Forex Industry?
The short answer is yes; in fact central banks are what the whole Forex industry revolves around. More specifically their commentary and decisions they make will impact interest rates. Every time something happens, every time the news comes out, a professional trader will be looking at it and their first thought will be, how this will impact how that central bank adjusts their interest rates.
Their thought process will be; will any particular news event make the central bank more likely to decrease rates or increase rates? They’ll subsequently trade the currency in that direction, if for example it’s an increase they’ll buy it and if it’s a decrease they will sell it.
That is essentially the most important question you need to be asking when trading Forex and the central banks when they make these decisions will literally move the price hundreds sometimes even thousands of pips just with their words and almost certainly with their actions.
So to sum up central banks are major players in the Forex industry and perhaps the most pivotal aspect you need to be watching when trading the currency markets.
At no time should anyone view the information presented anywhere on this website as advice, recommendation or proven. Everything reflected is merely opinion and may not be accurate. The purpose of the site is to express the opinions and views of Jarratt Davis. There is no intention to offer specific help, advice or suggestions to anyone reading any of the content posted here.
Editors’ Picks
EUR/USD climbs to 10-day highs above 1.0700
EUR/USD gained traction and rose to its highest level in over a week above 1.0700 in the American session on Tuesday. The renewed US Dollar weakness following the disappointing PMI data helps the pair stretch higher.
GBP/USD extends recovery beyond 1.2400 on broad USD weakness
GBP/USD gathered bullish momentum and extended its daily rebound toward 1.2450 in the second half of the day. The US Dollar came under heavy selling pressure after weaker-than-forecast PMI data and fueled the pair's rally.
Gold rebounds to $2,320 as US yields turn south
Gold reversed its direction and rose to the $2,320 area, erasing a large portion of its daily losses in the process. The benchmark 10-year US Treasury bond yield stays in the red below 4.6% following the weak US PMI data and supports XAU/USD.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
Germany’s economic come back
Germany is the sick man of Europe no more. Thanks to its service sector, it now appears that it will exit recession, and the economic future could be bright. The PMI data for April surprised on the upside for Germany, led by the service sector.
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