Among the elements that most draw the attention of investors to certain currencies compared to others and therefore influence the movements, either up or down, of currency pairs, we find of course the interest rates fixed by the large central banks.
Here we will explain how this influence can be used in order to generate profits more rapidly together with pertinent analyses of major coming trends on the EUR/GBP currency pair.
The large central banks are therefore the entities responsible for the fixing of the currencies interest rates. For the Euro it is of course the Central European Bank that determines and modifies the rate. For the British Pound, the interest rate is decided by the Bank of England, the central bank for Great Britain.
These rates and their movements are published weekly in the economic calendar.
The interest rates of the currencies are undoubtedly the most influential elements on the Forex market as they alone determine which currency can be most attractive without taking into account the exterior elements or the movements of the currency pair rate of which they form a part. In fact, the higher the interest rate of a currency, the more profit it can make at its resale against another currency.
It is therefore essential to compare the interest rates of the Euro and Pound Sterling at the time when you take position and also the time when you close it.