FOREX THEORY
Hawkish and Dovish Central
Banks (Part 3)
Much like how the market
reacts to the release of other economic reports or indicators, forex traders
react more to central bank activity and interest rate changes when they don’t
fall in line with current market expectation.
It’s getting easier to
foresee how a monetary policy will develop over time, due to an increasing
transparency by central banks.
Yet there’s always a
possibility that central bankers will change their outlook in greater or lesser
magnitude than expected. It’s during these times that marketing volatility is
high and care should be taken with existing and new trade positions.
 Much like how the market reacts to the release of o...){kind=link}
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