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I would be hesitant to make blanket statements like that about literally anything in the forex world. I would say that's a potential factor. Then again, I don'

by anm89 5y ago

I would be hesitant to make blanket statements like that about literally anything in the forex world. I would say that's a potential factor. Then again, I don't believe that there is much sentiment that rates are about to rise but I'm sure others would disagree.

hehetrthrthrjn 5y ago
Why? Relative interest rates are one of the main determinants of the value of a currency, and there is a very popular trade that enforces it. The "carry trade" involves borrowing money in a low interest currency (say EUR) and selling that to buy a higher yielding currency (USD) and pocketing the difference in interest rates.