Quote from eveningtrader:
If watching the short term rate is the only thing you need know in order to profit in currency, everyone would be rich. Just buy currency with high rate, and short the low one.
Absolutely not, mate. Buy the currency whose central bank is inclined to take up rates over the currency whose central bank is either keeping them steady or sounding dovish.
It's all about where rates are going, not where they already are.