The top of macroeconomic news that affect Forex

Today we will discuss the main news of macroeconomics, which affect the state of the Forex market.

Number of free vacancies in America 's non-agricultural sector (Non-Farm)

By analysing this indicator, we will learn how high the unemployment rate in the country is, as well as calculate the percentage of working but not employed. This news is published on every first Friday of the new month. If, for example, the unemployment rate is large, it is an indicator of the weakness of the labour market, and the dollar is falling. If the number of percent is low, it suggests that the market has gone up the mountain: the dollar is growing and stabilizing.

Interest rate

By analysing the level of the interest rate, we can understand whether our investment in a certain country will be profitable. Changes in quotations always depend on this key figure. This means that the rate will start to rise directly in proportion to the interest rate increase. The National Bank, putting up a certain level of interest rate, decides how much the currency will cost. Inflation is thus regulated.

GDP

Gross domestic product is an economic value that demonstrates the total price of the services and goods presented. GDP growth, it is an indicator of growth of the economy of the country, and therefore the exchange rate of the national currency also grows.

Balance of foreign trade

The foreign trade balance (or simply the trade balance) shows the difference between exports and imports in cash equivalent. In order to ensure positive growth dynamics of the economy, it is necessary that imports be less exports. Thus, a positive flow of currency into the country will be created, which increases the gold and foreign exchange reserves of the country and leads to an increase in the cost of nats. currencies. karta2

Consumer and production price index (inflation)

If the production price index is lower than the consumer price index, the interest rate will soon rise (in normal countries). Also, at the moment of rising consumer prices, the currency is growing.

Difference between revenues and expenditures of the state budget (relevant for developed countries)

Balance is an important indicator of macroeconomics. By analyzing this indicator, we can estimate the profit and waste of the country. If the expenditure of the state is higher than the income - there is a negative balance, and if on the contrary - a positive balance. In the event of a surplus, the price of the currency is rising.

Consumer loan

If the number of loans taken increases (which most often happens before holidays), the exchange rate of the national currency is stronger.

Gold reserve and currency of the country

The number of foreign exchange reserves is the potential of the state regarding investments in its economy. In order to become a successful trader, it is necessary to understand the news and be able to sort them, distinguishing important from unimportant ones. If you learn, and match this knowledge with your trading strategy - working for Forex will certainly bring you profit.

Johannes Röll

Johannes Röll was born 1978 in Brilon,Germany. Graduated RWTH Aachen University. Over the past ten years he worked as Head of the plastic card team, where he was mainly responsible for the development of the distribution, Head of sales Department and Financial Analyst,where he got experience in planning and support sales figures for branches. For the present he works as freelancer

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