Notes
- Current central banks’ interest rates:
- Funds seek to trade high-yielding currencies against weak-yielding currencies. Remember, money always looks for a yield.
- There is no need to pair only the currencies with the highest and lowest interest rates. The difference between the currencies’ interest rates is what is significant.
- A currency with a low or negative interest rate is considered weak, while a currency with a high interest rate is considered strong.
- High-probability trades occur when the fundamentals line up with the technicals.
- Always analyze open interest around support and resistance levels defined by institutional order flow.
Interest Rate Differentials - Central Bank Interest Rates
Interest Rate Differentials - Central Bank Interest Rates Example
Interest Rate Differentials - Selecting Pairs For Trading Long Position
Interest Rate Differentials - Australian Dollar Example
Interest Rate Differentials - US Dollar Index Example
Interest Rate Differentials - Selecting Pairs For Trading Short Position
Interest Rate Differentials - Japanese Yen Example
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