Everyone trader knows, what is the impact of the publication of economic indicators on the forex market. They come out at a specific time. And each of them affects the course of trading to one degree or another..
Therefore, it is very important to learn to understand and correctly interpret the emerging news in terms of their impact on the change in the exchange rate.. Each indicator has its own weight. Some indicators can change a trend or change currency quotes in a matter of minutes. Other indicators do not break the current situation, but they predict the prospects and direction of the market. Third indicators do not affect the market at all, however, they help to assess the situation and prospects of the market as a whole.
so, let's see, what indicators bring Forex to life and make money most of all.
GDP – this is the cost of all goods and services, made in the USA. If US GDP grows, the economy is growing too. If this growth is higher than GDP growth in other countries, means, investment in the US economy is increasing, the exchange rate of the national currency is also growing. This is a very important index for online forex. He has been assigned a degree of influence 3. It is published quarterly.
More important in terms of influence – business activity index. It shows the volume of production orders, commodity stocks and their prices. If this figure is lower 50 – the economy is falling. If higher 50 – the economy is growing. This index is published on the last business day of every month..
Traders also track the US Consumer Confidence Index every month.. To do this, they interrogate 5000 semey, to find out the reaction to the current situation, as well as the hopes or doubts of consumers for the future. The index is very old, рассчитывается с 1967 of the year. For traders, it is a leading indicator of the business cycle.. If it grows – the dollar rate is also growing. Means, you can trade up.
But another index is more important for forex market participants. – population income. It shows the level of purchasing power. To get a feel for the dynamics of the market and see this index in action, necessary open a forex account. Its growth leads to an increase in retail sales, and this is a positive factor for the development of the economy, and to strengthen the dollar. In terms of influence, the index is in first place. Published monthly.
Here are two more important indicators, to which the attention of traders is riveted. Jobs outside the agricultural sector – so called Nonfarm Payrolls. This is an estimate of the number of wage earners in the United States.. This indicator is used by traders to judge the inflation rate.. On Payrolls release days, usually, a record number of transactions are made on forex.
And finally, the so-called Beige Book. It is in this binding that the report of the US Federal Reserve System is published.. Фактически это экономический обзор FED по всем отраслям и ресурсам. Traders use the report to confirm current trends. And if there are rumors about a possible change in interest rates, then first of all traders study that part of the review, which reflects the state of wages and prices. Index comes out 8 once a year and excites the forex market, like many other indicators, on which traders make a lot of money.
