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| Where do swap rates come from? http://www.dukascopy.com/swiss/english/forex/jforex/forum/viewtopic.php?f=81&t=56354 |
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| Author: | mtnfx [ Wed 07 Mar, 2018, 19:04 ] |
| Post subject: | Where do swap rates come from? |
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 |
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| Author: | Jester [ Mon 07 May, 2018, 15:48 ] |
| Post subject: | Re: Where do swap rates come from? |
Your understanding is very limited. Swap rates are determined by numerous factors, basically originated from the so called money market. Supply/Demand fluctuations on this huge market which is bigger than spot forex could be followed by changing of swap rates without shifts of major CB rates. |
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| Author: | mtnfx [ Tue 08 May, 2018, 21:58 ] |
| Post subject: | Re: Where do swap rates come from? |
Jester wrote: Your understanding is very limited Yes, exactly  Jester wrote: Swap rates are determined by numerous factors, basically originated from the so called money market May you have a link with description of these "numerous factors"? I failed to google right resources on my own.
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| Author: | JudgeDredd [ Tue 26 Jun, 2018, 14:58 ] |
| Post subject: | Re: Where do swap rates come from? |
You can start Your deep dive in dark waters of global finance from here https://www.investopedia.com/university/moneymarket/ |
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| Author: | mtnfx [ Mon 06 Aug, 2018, 20:24 ] | ||
| Post subject: | Re: Where do swap rates come from? | ||
Can someone explain where these SWAPs numbers for AUD/JPY come from? Is it bug or is real? https://www.dukascopy.com/plugins/fxMarketWatch/?overnight_policy
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| Author: | JudgeDredd [ Sun 12 Aug, 2018, 23:04 ] |
| Post subject: | Re: Where do swap rates come from? |
Apaprently it was a bug. Currently there are the following figures in that widget for the position of 1 mio: AUD/JPY 0.35 -0.48 31.50 -43.79 |
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