Central banks play a crucial role in the Forex market by implementing monetary policies that influence currency values. They control interest rates, intervene in the Forex market to stabilize their currency, and use tools like quantitative easing or tightening.
For example, when a central bank raises interest rates, its currency may strengthen due to increased demand from investors seeking higher returns.
For example, when a central bank raises interest rates, its currency may strengthen due to increased demand from investors seeking higher returns.
