Several different factors affect the Forex market. When learning to trade it is of utmost importance to know and understand the various factors that cause the Forex market to fluctuate from day to day. The changes in foreign exchange market depend on the several economic factors that play a role in the movement of currency.
Economic reports and indicators released by the government or by private organizations express the economic performance of a country. These indicators measure a country's economic health, in addition to government policies and current events.
Most of the time, an experienced reputable broker can give advice on which trades will be the best based on such economic indicators. Reports analysing these indicators are released at scheduled times and can tell if a certain country's economy is experiencing improvement or if it is on the decline.
1. Current events and the state of the economy is one of the top economic indicators used when analyzing the Forex. Unemployment numbers, housing statistics and the current state of a country's government can affect the Forex market and the prices will reflect this. When a nation experiences political unrest, higher unemployment rates and inflation, the rate of the currency will be affected. Sometimes, this indicator tends to be overlooked, but it can serve as an important gauge in the fluctuations of the Forex market.
2. The gross domestic product, also called GDP, is another economic indicator that is used when looking at the foreign exchange market. The GDP is considered the widest and broadest measure of the economy in a country. The gross domestic product represents the total monetary value of all goods and services produced within any given country over a specified period. It is usually measured on a yearly basis but quarterly stats are also released. This indicator is not used alone when forecasting the Forex. Usually the gross domestic product is considered a lagging indicator, meaning that it is a measurable factor that changes after the economy has already began to follow a certain trend. The most recent GDP figures have high importance to the markets because they indicate the pace at which a country's economy is growing or shrinking.
3. The third economic indicator often used in analyzing the Forex is the retail sales reports. This indicator tracks the merchandise sold by companies within the retail trade, measuring the total consumer spending on retail sales in any country. Retail revenues are a major part of most countries economy. This is a very reliable and important economic indicator because it shows consumer spending patterns and confidence that may indicate increased economic activity throughout the year. This factor is usually more important than lagging indicators and give a clear picture of the state of the economy in any country.
4. The industrial production report is another reliable economic indicator in the foreign exchange market. It measures the change in the production of a nation's factories, mines, and utilities. The report also measures the industrial capacity and how many of the available resources are being used. (Production capacity utilization) When a country's production is at maximum capacity, it is considered an ideal condition and does positively affect the Forex market.
5. The last important economic factor in analyzing the Forex is the consumer price index or the CPI. The consumer price index is the measure of the change in the prices of a basket of consumer goods and services. Considered the most widely used measure of inflation the CPI is also regarded as an indicator of the effectiveness of Government policy. It can tell whether or not a country is making or losing money on their products and services. A rising CPI indicates inflation.
Tag:-market analysis real estate, how to find real estate investors, real estate forecasts, market research real estate, real estate growth, real estate technology, real estate market trends,leading economic indicators
Economic reports and indicators released by the government or by private organizations express the economic performance of a country. These indicators measure a country's economic health, in addition to government policies and current events.
Most of the time, an experienced reputable broker can give advice on which trades will be the best based on such economic indicators. Reports analysing these indicators are released at scheduled times and can tell if a certain country's economy is experiencing improvement or if it is on the decline.
1. Current events and the state of the economy is one of the top economic indicators used when analyzing the Forex. Unemployment numbers, housing statistics and the current state of a country's government can affect the Forex market and the prices will reflect this. When a nation experiences political unrest, higher unemployment rates and inflation, the rate of the currency will be affected. Sometimes, this indicator tends to be overlooked, but it can serve as an important gauge in the fluctuations of the Forex market.
2. The gross domestic product, also called GDP, is another economic indicator that is used when looking at the foreign exchange market. The GDP is considered the widest and broadest measure of the economy in a country. The gross domestic product represents the total monetary value of all goods and services produced within any given country over a specified period. It is usually measured on a yearly basis but quarterly stats are also released. This indicator is not used alone when forecasting the Forex. Usually the gross domestic product is considered a lagging indicator, meaning that it is a measurable factor that changes after the economy has already began to follow a certain trend. The most recent GDP figures have high importance to the markets because they indicate the pace at which a country's economy is growing or shrinking.
3. The third economic indicator often used in analyzing the Forex is the retail sales reports. This indicator tracks the merchandise sold by companies within the retail trade, measuring the total consumer spending on retail sales in any country. Retail revenues are a major part of most countries economy. This is a very reliable and important economic indicator because it shows consumer spending patterns and confidence that may indicate increased economic activity throughout the year. This factor is usually more important than lagging indicators and give a clear picture of the state of the economy in any country.
4. The industrial production report is another reliable economic indicator in the foreign exchange market. It measures the change in the production of a nation's factories, mines, and utilities. The report also measures the industrial capacity and how many of the available resources are being used. (Production capacity utilization) When a country's production is at maximum capacity, it is considered an ideal condition and does positively affect the Forex market.
5. The last important economic factor in analyzing the Forex is the consumer price index or the CPI. The consumer price index is the measure of the change in the prices of a basket of consumer goods and services. Considered the most widely used measure of inflation the CPI is also regarded as an indicator of the effectiveness of Government policy. It can tell whether or not a country is making or losing money on their products and services. A rising CPI indicates inflation.
Tag:-market analysis real estate, how to find real estate investors, real estate forecasts, market research real estate, real estate growth, real estate technology, real estate market trends,leading economic indicators
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