Felix Homogratus
Commander in Chief
- Messages
- 153
UK Interest Rate Statement comes out once per month at 7:00 am New York Time.
When interest rate of a country is higher, it attracts investors to buy its currency, which increases the value of the currency versus other currencies.
So, when interest rate is unexpectedly hiked, traders tend to speculatively buy Great British Pounds, so GBP/USD tends to go up. When interest rate is unexpectedly cut, traders tend to speculatively sell Great British Pounds, so GBP/USD tends to go down. Sometimes economists expect that UK will raise its interest rate, but they keep it unchanged. In such case traders will also sell Great British Pounds, and GBP/USD will probably go down. Or if it's expected that UK will cut its rate, but they keep it unchanged, traders will buy Great British Pounds, so GBP/USD will probably go up.
I highly recommend you see the history of this indicator and charts of how it affected GBP/USD and other currencies. You can do that by following this link: Forex News Trading | Details and History for GBP Interest Rate Statement
If you want me to email you 1 day before this report is released, and explain to you in details on how to trade it, then please sign up for my free trading signals by going to this link:
Forex Daily Trading Signals - Forex Peace Army Forum
In the signal, I tell you exactly how many pips the currency will most likely move, depending on the difference between expected and actual numbers.
When interest rate of a country is higher, it attracts investors to buy its currency, which increases the value of the currency versus other currencies.
So, when interest rate is unexpectedly hiked, traders tend to speculatively buy Great British Pounds, so GBP/USD tends to go up. When interest rate is unexpectedly cut, traders tend to speculatively sell Great British Pounds, so GBP/USD tends to go down. Sometimes economists expect that UK will raise its interest rate, but they keep it unchanged. In such case traders will also sell Great British Pounds, and GBP/USD will probably go down. Or if it's expected that UK will cut its rate, but they keep it unchanged, traders will buy Great British Pounds, so GBP/USD will probably go up.
I highly recommend you see the history of this indicator and charts of how it affected GBP/USD and other currencies. You can do that by following this link: Forex News Trading | Details and History for GBP Interest Rate Statement
If you want me to email you 1 day before this report is released, and explain to you in details on how to trade it, then please sign up for my free trading signals by going to this link:
Forex Daily Trading Signals - Forex Peace Army Forum
In the signal, I tell you exactly how many pips the currency will most likely move, depending on the difference between expected and actual numbers.
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