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The only way to know the change of interest rates of any major country is by monitoring the economic calendar. Besides, the released schedule of the interesting announcement of central banks, which is released once a month, is also important. The demand for a currency will be very sensitive to the central bank interest rate. Traders using certain strategies like carry trade pay the most attention to the news of interest rates changes.

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Interest rates add value to every country's currency. Higher interest rates in relation to a currency means it offers relatively higher return compared to any other currency. This way, the higher interest rates in a country, the demand for their currency will rise too because investors will want to have them.

The opposite may happen with lower interest rates. When a country's central bank lowers interest rates, the exchange rates will undergo depreciation. For instance, the Reserve Bank of Australia (RBA) cut their interest rates twice in 2013. Even further, until December of that year, the governor repeatedly mentioned the possibility of a third cut. As a result, AUD became one of the worst major in 2013, having entered a bearish trend that went on until 2014.

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Based on a survey in 2019, JP Morgan, UBS, and Deutsche Bank are the top 3. Each has a market share of 10.78%, 8.13%, and 7.58% of the global forex market respectively.

They are followed by Citi (5.53%), HSBC (5.33%), Goldman Sachs (4.62%), State Street (4.61%), and Bank of America Merrill Lynch (4.5%).

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Purchasing Managers Index, or what is known as PMI, is an economic report that draws conclusions from business surveys and indicates the business climate in a certain country during a particular period. They usually survey several private companies in the country and track indicators like new orders, production, employment, supplier deliveries, etc. In this regard, PMI is often seen as more comprehensive and useful than ordinary economic data such as GDP (Gross Domestic Product).

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