Hello Baby Pipers…
I have been trying to fit the concept of interest rate in the movement of the currency. So Higher the interest rate is, the more value of the currency is. I marked the change of interest rate on the USDCHF pair from 2007 (nominal interest rate) the relationship shows the exact opposite of what I read. Where is the mistake? (I understand interest rate alone is not the determinant it is so consistently opposite.) Its US - CHF = Differential. According to the Interest rate shown, shouldn’t the rise and fall be opposite?
