Glossary · Fundamentals & economics
Dovish
Leaning towards lower interest rates to support growth. Dovish surprises usually weaken a currency.
Related terms
Hawkish
Leaning towards higher interest rates to fight inflation. Hawkish…
Central bank
The institution that sets a country’s interest rates and monetary…
Forward guidance
What a central bank signals about future policy. Markets often…
Bond yields
The return on government bonds. Shifts in the gap between two…
Carry trade
Buying a high-interest currency against a low-interest one to earn…
Commitment of Traders (COT)
A weekly CFTC report showing how futures traders are positioned.…