Interest rates are a fundamental factor in the movements of currencies, so thorough research on the market and how interest rates affect currencies will help you to make better trading decisions.
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Central banks adjust interest rates to influence inflation and support economic growth. These decisions are a key driver of currency movements and can trigger sharp price swings when announced. In the short term, volatility is often caused by the difference between market expectations and the actual outcome.
Use an economic calendar to identify the forecast figure, as this is typically already reflected in market pricing. Pay close attention to the tone of the central bank's statement.
Hawkish stance: Signals of potential future rate hikes are generally supportive for the currency.Dovish stance: Indications that the bank may pause tightening or is concerned about economic growth are typically negative for the currency.
Risk management: Interest rate announcements can lead to sudden volatility, temporary spread widening, and price moves that may exceed stop loss levels.Use the FxPro Economic Calendar to follow upcoming Interest Rate Decisions and plan your trading with reports due to be released, previous economic events, consensus forecasts and estimated volatility.
Economic Calendar
Market News & Analysis
Real-Time Alerts
Smart Trading Insights
