Caused by an expected change in exchange rates. An expected increase in exchange rates may speed up transactions while an expected decrease may slow exchange rates.
Leads and Lags
Related Terms
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Forward guidance is a tool used by a central bank to try and influence market expectations of future levels of interest rates. “Forward guidance” in monetary policy means providing some information...
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A central bank is an organization that manages the currency of a country or group of countries and controls the money supply. Central banks, also called reserve banks, came into being because their...
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An exchange rate is the amount of one currency that is needed to buy one unit of another currency. For example, the GBP/USD exchange rate is 1.20. This means that it takes 1.20 U.S. dollars to buy...
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Yield curve control (“YCC”), also sometimes called interest rate pegs, is where bond yields are set by the central bank. It is considered a type of unconventional monetary policy. Under yield curve...
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The ISM manufacturing index, also known as the Purchasing Managers’ Index (PMI), monitors the health of U.S. manufacturers by surveying purchasing managers.