Hawkish vs Dovish: Differences Between Monetary Policies
As a consequence, their policies result in currency depreciation and can create a more uncertain or cautious market sentiment. These policies can have a significant impact on forex trading, as they can affect the demand for currencies and their exchange rates. Traders need to keep a close eye on the monetary policies of central banks and their statements to anticipate any changes in the market. However, a dovish monetary policy can also have positive effects on the economy. Lower interest rates can lead to an increase in borrowing and spending,…
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