Hawkish vs Dovish
FundamentalsCentral-bank language leaning toward higher rates (hawkish, currency-positive) versus lower rates or stimulus (dovish, currency-negative).
"Hawkish" describes central-bank language or policy that leans toward higher interest rates to fight inflation, which tends to strengthen a currency. "Dovish" describes the opposite — a bias toward lower rates or continued stimulus to support growth and employment, which tends to weaken it.
Markets parse central bank statements word by word for shifts in hawkish/dovish tone, since a change in language can move a currency as much as the rate decision itself.