Forex Dictionary Terms


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Definition – What does Hawkish mean?

Hawkish is a comment on the attitude of a central bank towards inflation within the domestic currency. A hawkish central bank has an anti-inflation stance that is likely to be backed by tight fiscal policies. Nations that carefully control inflation generally have less price volatility compared to other currencies with looser monetary policy.

ForexTerms explains Hawkish

It is important for forex traders to understand how a central bank is influencing a nation’s currency. Identifying a central bank as hawkish is usually means it is more fiscally responsible when compared to other nations. This, in turn, can result in the currency seeing general appreciation on the forex market as other currencies are diluted via inflation.

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