Central Banks are the most powerful players in the currency market.
Did you notice the last FOMC Meeting in December 2016 when Federal Reserve announced increasing interest rates?
This announcement started a big move on all the USD pairs.
Interest rates are an important policy tool at the disposal of a central bank.
Central Banks also have the power to create money out of thin air. Yes central banks can create money.
This power to increase/decrease money supply is also used by central banks to achieve their policy objectives.
Federal Reserve is mandated with the task of keeping inflation and unemployment under 3%.
Macroeconomics is an important subject that many currency traders don't learn or understand.
Monetary policy is a very tool at the disposal of central banks which they often use to control currency markets.
Did you notice whenever Bank of Japan (BOJ) makes a monetary policy statement it moves USDJPY big time sometimes it results in a 1000 pips move.
You can take a look at the Macroeconomics For Currency Traders Course.
In this course, I show how macroeconomic fundamentals effect the currency market.
Understanding how central banks operate and make their policy can help you a lot in understanding currency market behavior.
Did you notice the last FOMC Meeting in December 2016 when Federal Reserve announced increasing interest rates?
This announcement started a big move on all the USD pairs.
Interest rates are an important policy tool at the disposal of a central bank.
Central Banks also have the power to create money out of thin air. Yes central banks can create money.
This power to increase/decrease money supply is also used by central banks to achieve their policy objectives.
Federal Reserve is mandated with the task of keeping inflation and unemployment under 3%.
Macroeconomics is an important subject that many currency traders don't learn or understand.
Monetary policy is a very tool at the disposal of central banks which they often use to control currency markets.
Did you notice whenever Bank of Japan (BOJ) makes a monetary policy statement it moves USDJPY big time sometimes it results in a 1000 pips move.
You can take a look at the Macroeconomics For Currency Traders Course.
In this course, I show how macroeconomic fundamentals effect the currency market.
Understanding how central banks operate and make their policy can help you a lot in understanding currency market behavior.
