FOREX THEORY
Hawkish and Dovish Central Banks (Part 2)
While the central bank chairman
isn’t the only one making monetary policy decisions for a country or economy,
what he or she has to say is only not ignored, but revered like the gospel.
Okay, maybe that was a bit
dramatic, but you get the point.
Not all central bank officials
carry the same weight.
Central bank speeches have a way of
inciting a market response, so watch for quick movement following an
announcement.
Speeches can include anything from
changes (increases, decreases or holds) to current interest rates, to
discussions about economic growth measurements and outlook, to monetary policy
announcements outlining current and future changes.
But don’t despair if you can’t tune
in to the live event. As soon as the speech or announcement hits the airwaves,
news agencies from all over make the information available to the public.
Forex analysts and traders alike
take the news and try to dissect the overall tone and language of the
announcement, taking special care to do this when interest rate changes or economic
growth information are involved.
 While the central bank chairman isn’t the only one ...){kind=link}
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