Glossary · Fundamentals & economics
Forward guidance
What a central bank signals about future policy. Markets often react more to the guidance than to the decision itself.
Related terms
Hawkish
Leaning towards higher interest rates to fight inflation. Hawkish…
Dovish
Leaning towards lower interest rates to support growth. Dovish…
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…
Central bank
The institution that sets a country’s interest rates and monetary…
Commitment of Traders (COT)
A weekly CFTC report showing how futures traders are positioned.…