I’ve heard this term many times thruout my forex experience and it still continues to draw a blank.
Can someone simply explain, what is meant by “HAWKISH”? “So and so made his speech today and was “HAWKISH” towards the economy.”
Just an example of what I’m asking about.
Thanks in advance…
hawkish: optimistic about the economy, leading to higher interest rates and generally drives currency value higher relative to others
dovish: pessimistic about the economy, leading to lower interest rates and generally leads to lower currency value relative to others
For example, for better part of last year, the feds were mostly dovish in their speeches and kept cutting the interest rate, while the european central bank was persistently hawkish and held their rates steady for a long time, until recently.
Hope this helps.