Forex Fundamentals
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Central Banks in Forex

Central banks in forex move currencies through the interest rate they set and the signals they give about where it goes next. A pair moves on the gap between two central banks’ paths. These guides explain how to read a bank’s tone, its projections and the peak rate markets expect.

The guides

  • What Is Hawkish and Dovish in Forex?

    What is hawkish and dovish? Hawkish: a central bank leans toward higher rates to fight inflation. Dovish: it leans toward lower rates to support growth.

  • What Is the Terminal Rate?

    What is the terminal rate? The peak rate markets expect a central bank to reach in this cycle, priced in futures and swaps, and why it moves currencies.

  • The Fed Dot Plot Explained

    Dot plot explained: how each Fed policymaker marks the rate path, how to read the median and longer-run dots, and why the gap with pricing moves the dollar.

Where to see it in the data