Bloomberg Market Concepts Revised Questions and Answers / Sure A+

"New news" moves markets. Accordingly, the economic indicators that heralds "new news" are of the most value to traders and investors. - timeliness of release By what mechanism so interest rates affect currency value? - Global investors are attracted by higher bond yields in high interest rate countries Central Banks an Currencies summary: - -central bankers control the levers of the currency markets -the standard inflation target is 2% for industrialized nations -inflation can lead to a vicious cycle of pay increases leading to price increases -deflation can lead to a vicious cycle of purchase deferrals and layoffs Currency market mechanics summary: - -the US dollar equivilent of 5T of currencies are traded every day -1971 marked the dawn of the modern currency market -several contries peg their currencies to other currencies -locked exchange rates are not actually set in stone but are government aspirations -floating currencies move against one another in a matrix -the US dollar is the world's reserve currency and is the most heavily traded currency