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The shocking truth about FED's interest rate policy and Dollar's value.

Discussion in 'Technical Analysis' started by FXStreet_Team, Mar 8, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    It has long been argued that the strength or weakness of the U.S Dollar depends largely on the Interest rate cycle that the FED is operating on. The theory being: A rate lowering cycle drives down interest cost to borrow the Dollar. The amount of Dollars in Circulation increases, Meaning a Weaker Currency value. On the flip side, A rate raising cycle drives up the interest cost to borrow the Dollar. The amount of Dollars in Circulation decreases, Meaning a stronger Currency value. This is the

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