Reader Comments

Smart Money System Review

by Emily Jacob (2019-01-29)

The relationship between interest Smart Money System rates and foreign exchange might not be immediately obvious. After all, on the surface forex traders make money by the movement of bid/ask and the spread in between. However, as a country's interest rates increase, more money tends to flow in because investors want to capitalize on the higher rates. This increases the demand for that currency and as basic economic theory dictates; increased demand pushes up the price of money aka the exchange rate. It follows then, that one of the key areas of forex focus should always be interest rate movements.