FX Essential Information: Foreign Exchange Rates and Interest Rate Differentials 2022/06/03(1)
Essential basic information for those watching the currency market.
The market is determined by supply and demand, but the major factor moving supply and demand is the interest rate differential.
The relationship between the currency market and interest rate differentials is the most important and fundamental for FX.
One must always grasp that situation.
That relationship is not permanent. It often changes its form.
Regularly, we follow information about that relationship.
Below, a graph is shown.
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