The Growing Influence of Central Bank Policies on Forex Central banks play a pivotal role in shaping forex markets. Through interest rate decisions, monetary policy statements, and economic outlooks, they influence currency values on both short and long-term horizons. When a central bank raises interest rates, its currency often strengthens as higher yields attract investors. Conversely, rate cuts typically weaken a currency. However, it’s not just the decision itself that matters—market expectations, forward guidance, and tone during press conferences can drive significant moves. In today’s environment, traders closely monitor statements from the Federal Reserve, European Central Bank, Bank of England, and others, as their actions affect global liquidity and risk sentiment. AI-driven tools now analyze these communications to detect subtle shifts in policy stance, offering traders valuable foresight. Understanding central bank dynamics and staying updated on policy changes helps traders anticipate market reactions and align their strategies with the evolving macroeconomic landscape. #CommunityAMA