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* **Interest Rate Decisions:** Interest rates are a big deal. They're set by central banks, like the Federal Reserve in the US or the European Central Bank. When interest rates go up, it usually makes a currency more attractive to investors, as they can earn a higher return on their investments. This often leads to an increase in the currency's value. Conversely, if interest rates go down, the currency's value may fall. The market's reaction can be dramatic. The announcements of rate hikes or cuts are always high-impact events.
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