Page 31 - Ultimate Guide to Currency Trading
P. 31
CHAPTER 4
Moving the Currency Markets
One of the factors that goes into the perceived value of a currency is its interest
rate as set by that nation's central bank. In addition to a central bank's
intervention and control of interest rates, and the talking up or down of a
currency, you must consider that government's debt levels and its money supply
before pricing a currency in a pair. Other factors include whether or not that
economy is moving along at a slower or faster rate than the counter currency of
the pair. Read on to learn to identify these key factors.
