Fundamental Tips: Swing Trade By Just Looking At High Interest Rates?

Some ask about can we trade swing by looking at the high national interest rates?

The meaning here is to get a national currency that has a high and low-interest rate, then make it a currency pair. If it's like this, it's easy, and a very easy job. But the fact is he is not like that.

Analysis of wanting to trade, especially swing trade, is not enough just looking at high-interest rates. If you just look at the high-interest rates, of course, the NZD currency will make the most increase. But what happened was the opposite.

Another example is EUR / USD where the interest rate in the European Zone was 0.0% in 2017 and the interest rate in the United States 0.50% in early 2017. If only looking at the high-interest rate, of course, this pair made a decline over the past year, but what is happening is the opposite where EUR / USD is making a bullish trend.

The market is currently moving more according to sentiments - political sentiment, geopolitics, Trump, Syria, North Korea, NAFTA, tariffs. This is the biggest market mover in recent months.


For trade, we need to know what is the current focus of the market?

Not to say interest rates don’t matter, but that’s the first thing we need to know. For now, the market movement is more towards sentiment. How do you know sentiment? If the news is always and much covered by market news agencies like Bloomberg, Reuters, CNBC - That is the current sentiment.

Already know the current sentiment, relate whether the news supports the currency or not?

For example, market sentiment is good. The effect is on the weakness of the Yen. So, we tear up SELL Yen only. Or when sentiment turns bad, we look for an opportunity to BUY Yen.