This course takes a detailed look at policies created by central banks. The aim is to ensure that you understand all policies being currently implemented by central banks and their effect on trading directly and indirectly. You will also get to understand the process through which central bank create and implement their policies.
The course will give you the ability to look at each policy and understand its impact on Forex trading. As a result, you can make informed choices when buying or selling on the Forex market. When you are through with the course, you will understand how the Bank of England’s policies work as well as the policies of other major central banks.
The module is designed to give students the skills to accurately analyse various indicators and assess their effect on the market. Consequently, students will be able to react in the right way. Responding at the right time to a new policy can mean the difference between a good day of trading and a losing streak. Students will understand how interest rates affect the rate of return when trading the market.
Who Should Take This Class?
This course is designed for investors, Forex traders, investment bankers, analysts, and financial advisors.
• Monetary policy
• Interest rates
• How to calculate interest rates
• Understanding economic indicators
• Understanding inflation
• Understanding quantitative easing
You will be taught about central bank lending rates. Besides that, you will get an introduction into basic concepts like liquidity, inflation, base rate, discount rate, and how each of them affects trading. You will also learn how central banks can work together to benefit their region. In the course, you will learn about the major central banks such as the European Central Bank, the US Federal Reserve, Bank of England, Bank of Japan, Bank of Canada, and the Reserve Bank of Australia. The course will teach you about the top sources for factual news on central bank policies.
You will be taught how central banks create their policies as a way to regulate the circulation of currency. This lesson will also teach you how various economic indicators like the consumer price index and job numbers affect the central bank policies regarding interest rates. It makes it possible to predict if the rates will be hiked or dropped, which depends on these indicators.
As the course continues, your skills for trading the market will improve. You will learn how inflation and interest rates are related. This course will allow you to pay close attention to major policy moves made by central banks. It will teach you the practical techniques that you can use to stage your intervention in light of a central bank policy shift.