How are you reading the Scandinavian decision day?
Norges Bank and the Riksbank decide on 24 September, alongside the SNB (preview and SNB preview). Three banks, three currencies, one busy Thursday.
What's your plan for the day?
- the decision you're watching and your expectation
- how the three events interact for EUR/SEK and EUR/NOK
- whether you trade these or watch them for the majors' read-through
Background: how interest rate decisions move currencies.
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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