All language subtitles for 4_fodase01asdasd

fundamental divergence. You've
got to understand the

detailed but yeah guys that's
it for this lesson. I hope you

banks do. Now this is going to
be explored in a lot more

for everything that's to come.
So yeah guys take care and I'll

you compare one economy to the
next. If you start to see that

that you affect interest rates
and that's exactly what central

obviously take notes and this
one is more in a preparation

interest rates. So again just
go on trade and economics com.

comparison. So this was a
screenshot I believe from a

lot of countries that have low
interest rates for example the

everything shutting down
eventually you need the economy

understand okay which is which
is stronger at the moment even

while ago but you'll see around
the world especially there's a

USD for going for example. Now
in the same way that we saw the

expect to get stronger or
weaker. There there in fact

individually or you can look at
it as part of the data

are trying to expand because of
the effects of the pandemic and

US at the moment has 0. 25% the
United Kingdom 0. 1% France 0%

economy. So inside the domestic
currency in a way. Because at

You're going to get all the
information there. You can look

difference between the two
economies and which one we can

at the different countries and
their economic indicators

GBP is devaluing. You might be
confused because you've got to

that will lead to you
understanding where you see GBP

though they're both devaluing
and that's exactly what we call

to expand and what's the way
what's one of the ways you do

Italy 0% as you can see we're
in a time where the economies

lesson on GDP you're going to
get the exact same table on

might have not come across but
what it means is inside the

investment that's everything
that we're going to be getting

into. So just understand that
interest as interest rates

DXY for example or the US
dollar is devaluing but also

looking for is a fundamental
divergence. What that means is

devalue endogenerously. Um this
is a word that perhaps you

reduced usually you start to
see the currency devalue

the end of when it comes to
fundamentals what we're really

know you have less to pay less
to pay back because the higher

into it into anything and just
as a precursor to everything

interest rates now throughout
this you're going to understand

due to that economic
stimulation. Now the effect of

interest rates and the direct
effect it has. So as interest

loan that you'd like or a
mortgage for example you're

borrowers borrow and lend money
particularly it's more about

money supply for example
because essentially they're

more encouraged to go out and
get that mortgage because you

interest rate means the highest
the higher amount you're

that you will learn. Uh
understand this concept of

interest rates has on inflation
exports and imports global

the end of the day
understanding fundamentals is

going to have to pay back on
that loan therefore the expands

the borrowing part so if you've
got a lower interest rate on a

the direct effects of interest
rates on the economy and what

our currency pairs and where we
see it going. Now before we get

rates lower we are seeing an
expansionary policy because it

all well and good but how do we
actually translate that into

encourages more economic
stimulation as consumers and

it means for the currency pairs
that we will trade because at

course this is just an
introduction to everything and

and bonds is what governments
actually use to increase their

not just going to be the yields
on the bond market but the bond

like loans for them but yeah
that's it for the effect on

market is very heavily
influenced by interest rates

looking at the yields on assets
like bonds it's of course it's

then of course like we
mentioned previously it affects

investment around the world
particularly when you're

we're going to be breaking down
in much more depth but of

contractionary monetary
policies it's something that

third section of fundamentals
or the second one. But yeah

through the introduction of
expansionary versus

monetary policies so it has an
adverse effect on the inflation

loans for businesses so of
course that affects stimulation

interest rates. The first way
we can look at it is that it

going to get our mortgages this
is where we're going to get our

Fed fund rate. Now there's
going to be a whole lesson on

affects the loan rates between
banks. This is what we call the

this has a great effect on the
consumers and the general

around the economy as well then
another way to look at it is

population because at the end
of the day this is where we're

deflationary or contractionary
phases which is deflationary.

this and there are types of
indicators in I believe the

So in the US it's the Federal
Reserve. Now the effect of

looking at your domestic
currency and what they offer

essentially they're the guys
that fluctuate the the interest

rates to to either enter
expansionary phases or

they're the driving they're the
drivers of the economy

return on your investment
you're going to be not only

controls the interest rates put
simply it's essential banks

with their assets but also
internationally as well and who

large amount of money to invest
and you're looking for the best

between them all and also
investment between the

different types of economies
you know if if you've got a

compared to another. There's a
lot of trade that happens

So as we know especially in
modern times the economy is

global. It's not just one
entity compared to one entity

the internal economy but also
affecting the global economy.

most important factors in the
economy as it heavily

lender charges a borrower and
is a percentage of the

it usually would So the
interest rate is the amount a

principle, the amount loaned.
Now what's the importance of

drivers of the economy it's up
to them whether they put breaks

on the economy to slow it down
or to allow it to speed up as

influences the movement of
money and investments around

the interest rate? The interest
rates are perhaps one of the

back to our introduction and
the economic train video you

know it's up to the central
banks whether so who are the

Yes hello everyone welcome to
the next lesson so in this one

we're going to be looking at
interest rates so if you refer

can refer to interest rates as
the breaks of the economy you

see you in the next video.