2min chapter

Forward Guidance cover image

The Sovereign Debt Crisis Is Coming | Brent Johnson

Forward Guidance

CHAPTER

Why Do Currencies Move Through So Many Different Factors?

Interest rate differentials have played a role in the dollar's recent run. The federal reserve is yielding four % and the european central bank is yields one%. There's an automatic bid for the dollar, just because of all the global debt that's issued in dollars. But when interest rates differentials favor the us, it just adds an additional layer of of demand.

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