Interest Rate differential

Beginner Questions
1

I am reading through the forex school info, and I saw the section about interest rate differential.

I can’t fins interest rate charts comparing countries anywhere.

Where can I find one of those?

2

https://tradingeconomics.com/country-list/interest-rate

2 Likes
3

Many people don’t really understand interest rate differential.

Each Central Bank around the world only meets to consider adjustments to their target rate a handful of times per year. This leaves large static times when their target rates are unchanged and hence currency pairs already have this priced into them most of the time.

Instead of the official target rates to employ interest rate differential as part of your trading you should look at difference in Government Bonds. Otherwise known as the spread between Government Bonds.

For example you want to trade GBPAUD you would use the spread of British Bonds (maybe choose the 10 year bonds) to the Australian Bonds of the same type. With this example in TradingView I believe you can create a custom chart to show the spread of GB10Y and AU10Y.

I have found a YouTube link explaining how to set up a custom chart with TradingView.

Hope this helps.

2 Likes
4

Thank you so much!!!

5

oh wow!

I hadn’t thought of that!

Thank you very much for your response =)

1 Like
6

Welcome.
Happy to share on here to benefit you and those in the future who read this thread.

1 Like