| Inflation. When inflation rate is down,
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| | representation.Who exactly determines the
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| banks would cut down interest rates to
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| | rates? For the US dollar, the trader
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| encourage economic activities. On the
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| | would be wise to watch closely interest
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| other hand, during high inflation, banks
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| | rate decisions by the Federal Market Open
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| would increase the interest rates to
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| | Committee. FOMC meets regularly each year
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| discourage lending and spending. Hiking
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| | to determine key interest rates and to
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| up the interest rates boosts the value of
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| | decide whether to increase or to decrease
|
| the currency. This is true in US where
| |
| | the money supply through the buying and
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| rising of interest rates by the Federal
| |
| | selling of government securities. In
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| bank would encourage investors to
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| | order to know more about these decisions,
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| capitalize on higher returns. What is the
| |
| | the trader could read up on the FOMC
|
| better way to measure inflation in a
| |
| | meetings minutes released three weeks
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| certain country rather than to refer its
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| | after the date of each policy decision.
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| consumer price index? Each country may
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| | Speculations of a hike in interest rates
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| have different ways of measuring and
| |
| | would probably boost the dollar up.
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| inflation indication.You can actually
| |
| | Playing similar roles is the Europe
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| identify the inflation rate by watching
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| | Central Bank, Bank of Japan, Bank of
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| the housing market in UK which is
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| | England and the Swiss National Bank.
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| considered more accurate
| |
| |
|
