OPEN-SOURCE SCRIPT

[SGM Forex Interest Rate]

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Through an analysis of the interest rates of selected currencies, this indicator calculates the difference between these rates to provide an indication of the relative strength between the two currencies. This relative strength is graphically represented as an area with a specific color for better visualization.

The curves represent the values of the two selected currencies, while the colored area between them highlights the difference in strength. A horizontal line is also drawn at the zero level to help identify turning points or divergence points.


Interest rates play a crucial role in forex trading for several reasons:

Impact on capital flows: Interest rates affect international capital flows. Investors are attracted to currencies offering higher yields, which can lead to currency appreciation with higher interest rates.
Influence on monetary policy decisions: Central banks often adjust interest rates to achieve macroeconomic goals such as price stability, economic growth, and full employment. Announcements of interest rate changes or hints about the future direction of rates can have a significant impact on the foreign exchange market.

Determination of financing costs: Interest rates affect the financing costs of transactions in the foreign exchange market. Traders often borrow low-interest currencies to purchase higher-yielding currencies, which can lead to large movements in the market.

Economic Indicators: Interest rates are also key economic indicators. Changes in interest rates may reflect overall economic conditions and be interpreted as signs of economic growth or contraction.
Risk and volatility factors: Interest rate differences between two countries can create arbitrage opportunities, but also risks. Unexpected changes in interest rates or market expectations may result in increased volatility in the foreign exchange market.

In sum, interest rates are a fundamental part of the global financial landscape and are therefore crucial for forex traders, as they provide indications of economic trends, capital flows and trading opportunities.
Notes de version

Through an analysis of the interest rates of selected currencies, this indicator calculates the difference between these rates to provide an indication of the relative strength between the two currencies. This relative strength is graphically represented as an area with a specific color for better visualization.

The curves represent the values of the two selected currencies, while the colored area between them highlights the difference in strength. A horizontal line is also drawn at the zero level to help identify turning points or divergence points.


Interest rates play a crucial role in forex trading for several reasons:

Impact on capital flows: Interest rates affect international capital flows. Investors are attracted to currencies offering higher yields, which can lead to currency appreciation with higher interest rates.
Influence on monetary policy decisions: Central banks often adjust interest rates to achieve macroeconomic goals such as price stability, economic growth, and full employment. Announcements of interest rate changes or hints about the future direction of rates can have a significant impact on the foreign exchange market.

Determination of financing costs: Interest rates affect the financing costs of transactions in the foreign exchange market. Traders often borrow low-interest currencies to purchase higher-yielding currencies, which can lead to large movements in the market.

Economic Indicators: Interest rates are also key economic indicators. Changes in interest rates may reflect overall economic conditions and be interpreted as signs of economic growth or contraction.
Risk and volatility factors: Interest rate differences between two countries can create arbitrage opportunities, but also risks. Unexpected changes in interest rates or market expectations may result in increased volatility in the foreign exchange market.

In sum, interest rates are a fundamental part of the global financial landscape and are therefore crucial for forex traders, as they provide indications of economic trends, capital flows and trading opportunities.
Notes de version
correction NZDINTR to NZINTR
Fundamental Analysis

Script open-source

Dans le plus pur esprit TradingView, l'auteur de ce script l'a publié en open-source, afin que les traders puissent le comprendre et le vérifier. Bravo à l'auteur! Vous pouvez l'utiliser gratuitement, mais la réutilisation de ce code dans une publication est régie par nos Règles. Vous pouvez le mettre en favori pour l'utiliser sur un graphique.

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