The Forex market and Central Banks

I have always found the relationships between central bank decisions and consequent currency movements to be very interesting. I was unaware when I was starting Forex Trading the effects the comments by central bank officials can have on currency values, in some cases more than the actual rate-change decision.

The Major Central Banks of the world each have their own characters. People can usually predict their behavior in various circumstances based on who is in charge, or the decisions they have made in the past. For instance, it is well known that the European Central Bank is generally against dropping Interest rates to very low levels, if they can help it.

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