Hawkish and dovish: what do they actually mean?
A hawk wants tighter policy — higher rates — to fight inflation. A dove wants looser policy to support growth. Central bank commentary is read through this lens, and one word change can move a currency.
Post the phrase that confused you, or the hawk/dove signal you look for. Experienced members: what's the subtlest hawkish or dovish signal you've seen move a pair?
The interest rates guide covers the language of central banks.
Background: How interest rate decisions move currencies
Central bank decisions are the biggest scheduled events in forex. Why rates matter, why a hike can weaken a currency, and what to read beyond the decision.
Does a rate hike always strengthen a currency?
No. If the hike was fully expected, it is already in the price. The currency can even weaken if the central bank signals that it won't raise rates further.
What does hawkish mean?
Leaning towards higher interest rates to control inflation. A hawkish surprise usually supports the currency.
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