Hello,
i'm not sure if anyone here is tracking changes in overnight swap rates. I do. And I noticed that today swap rates across all currencies have changed significantly.
https://www.dukascopy.com/plugins/fxMarketWatch/?overnight_policy For example swap per 1MLN BUY of EUR/CHF
was - around $+110 (from my memory)
now - $+1.3 - it is 85 times lower
Most other pairs I look after got 25-50% change in swap rates.
In my understanding swaps come from difference of currency's central bank interest rates - therefore swaps should change when one of the central banks in currency pair changes its interest rate.
But as far as I see it from practice - swap rates change more frequently and because of some
other unknown reasons.
Such significant changes as I see today significantly affects approach to trading and I'd like to better understand what I can expect in future.
Can someone explain where swap rates (
here) come from?
Note: there were no changes in Central Bank rates nor for EUR nor for CHF since 2016
https://www.dukascopy.com/plugins/fxMarketWatch/?interest_rate_calendar