Data Strategy · Monthly · Global bank · Theoretical Overnight Interest
*** In theory, the positive and negative values of the interest difference determine the long-term direction of the currency pair! However, fund managers should be particularly vigilant: holding long-term currency pairs with huge overnight cost with negative overnight interest spreads may bring disaster, which is my personal experience and real experience!
*** This is only the theoretical overnight interest. Different countries, different forex banks, different forex platforms, plus their earnings, the published values are different.
*** Their common approach is to pay less for positive interest rates and overcharge for negative interest rates. This is their return.
* Valuation currency: USD