WHY CAN A CURRENCY FALL AFTER A RATE HIKE?
Because markets trade expectations. If the rate hike was fully priced in, or the central bank sounds less aggressive than expected, the currency may weaken despite the increase.
Because markets trade expectations. If the rate hike was fully priced in, or the central bank sounds less aggressive than expected, the currency may weaken despite the increase.
No comments yet. Start the conversation.