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Trends & Analysis
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US dollar eases from 10-month high

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Gold price tests a multi-month low on a stronger USD

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Micron shares slide despite upbeat results

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Will gold hold or fold?

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Costco shares slide despite earnings beat

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Crude oil becomes volatile as Russia relaxes ban

Trends & Analysis
News

US dollar eases from 10-month high

News

Gold price tests a multi-month low on a stronger USD

News

Micron shares slide despite upbeat results

News

Will gold hold or fold?

News

Costco shares slide despite earnings beat

News

Crude oil becomes volatile as Russia relaxes ban


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Bank rate definition

Bank rate, or discount rate, refers to the interest rate charged by a country’s central bank when it lends money to a domestic or commercial bank, often in the form of short-term loans. By managing its bank rate, central banks can affect economic activity. For instance, lowering a bank rate can help to boost an economy by lowering the cost of funds for borrowers, increasing market activity. Conversely, increasing a bank rate can slow down an economy and decrease market activity.

How bank rates affect the financial markets

Bank rates can have an impact on the value of currencies. This is because higher interest rates can attract foreign investment and strengthen a currency, while lower interest rates can reduce foreign investment and weaken a currency.

When a central bank raises a bank rate, borrowing becomes more expensive for commercial banks, which lead to higher interest rates. This can in turn lead to a currency’s value appreciating against other currencies. Conversely, when a central bank lowers a bank rate, it can lead to a currency’s value depreciating against other currencies.

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Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

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ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.