Concept guide · FX & Commodities
Currency Pairs & Rate Differentials
How exchange rates interact with inflation, capital flows and relative policy expectations.
What an FX pair says
EUR/USD is the U.S.-dollar price of one euro. Changes describe relative currency values, not an absolute rise or fall in all currencies.
Why differences matter
Relative interest rates and growth expectations influence capital flows and exchange rates, alongside hedging, positioning and risk appetite.
Common error
An unexpected rate hike does not guarantee currency appreciation if it was already priced or raises growth concerns.