European Market Headlines

Large variations in interest rates can lead to significant credits or debits each day, which may greatly enhance or erode earnings of the commerce. Currency prices move constantly, so the dealer might decide to carry the position overnight. The dealer will rollover the place, leading to a credit or debit based mostly on the rate of interest differential between the Eurozone and the U.S. If the Eurozone has an interest rate of 4% and the united states has an rate of interest of 3%, the dealer owns the upper interest rate currency on this example.