Help: interest rates, growth, inflation - is there a trend? So I can react 2 any 1

Beginner Questions
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links are welcome too

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Hello,

I’m a newbie as well. I asked a similar question last week and got some good answers so you should read this

Yes an increase in interest rates makes that countries currency more attractive to forigen investors so they will buy that currency and the value of the currency should increase. Inflation has the opposite effect, prices of goods and services in that country rise so the real value of the currency will fall, forigen investors will sell and the exchange rate will drop.

BUT things like interests and inflation will only have an effect on the exchange rate in the long term so will not be of much importance if you are making trades on short term. Read the answers on my post for a better explaination.

Kev

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Hi from what I read I surmise as this: inflation leads interest rate. If inflation is high interests rate are raised to encourage saving. Higher interest rates then attract international investors… take it or leave it!

Thanks for link. This newbie disagrees (lol) I will always put fundamentals first (statistics) then sentimental (news reports) before finally defining a position (technical)