The main economic indicators

  • May 25 2017
  • by
  • Analyst AZA
The main economic indicators
The main economic indicators on which to build forex trading
Many factors affect forex trading. It is especially important for a player to know and be able to analyze, understand various aspects that provoke fluctuations in the market, processes occurring daily. Forex exchange is a market. The currency exchange market, which changes as a result of the influence of various processes and factors of an economic nature on it. They are important in that they affect the price dynamics of exchange rates. Economic indicators and factors are determined by the government and government, or private companies and organizations that can perform a detailed analysis of indicators and factors of an economic nature. These tools are used by experts and traders to analyze the economic performance in the state. With the help of economic reports, the country's economic situation is evaluated, along with an assessment of the policy of the authorities and the analysis of events at the current time. As a rule, modern traders, using economic indicators, can recognize potentially profitable trading operations. Information on them (reports) comes out on a fixed date, and we can observe the economic situation in a particular country, analyzing what is happening in the state, and assessing the level of the economy, its development, or vice versa, noticing a strong decline. In the case of price fluctuations, they can be successfully influenced, using the results obtained with the benefit for themselves. Evaluation of current events, news and events, as well as assessing the economic situation in the country is the leading economic forex indicator, which is successfully applied by participants in the foreign exchange market, analyzing and making forecasts. Factors such as unemployment data, housing statistics, government status and others, are affecting the market, triggering tangible fluctuations on the exchange. The price of forex reflects all this. In the case of stability and a good state of affairs in the country, we can trace this in the market. Similarly, political and economic instability, which in one way or another affect the prices of the foreign exchange market, for example, by increasing unemployment and inflation. Such an indicator is very important: it measures market fluctuations, and the trader, in turn, should use the information as profitable as possible in the bidding process. Such an indicator as GDP - gross domestic product also acts as a significant economic indicator in the international foreign exchange market. GDP not only demonstrates the overall economic state of the country but also reflects the value of products, services and goods that are produced in the country in question. As a rule, he calculates for the year. The use of such a long period makes it possible to obtain improved data - product statistics. GDP is not only a means to predict the market situation, but also an indicator that is lagging and, in fact, acts as a measurable quantity, it changes after the economy adopts a fixed and clear trend. The third economic indicator is the reports on retail sales, which are actively used by forex analysts. This is nothing more than the number of cash receipts of all retail structures throughout the country. The indicator is important and of special importance, providing speculators and market experts with a holistic picture of the economy in a particular state. Also, reliability and importance are different and another, no less significant tool is the Index of industrial production. The indicator clearly shows the fluctuations in various production structures and plants. It reflects the ratio of real production to the potential capacity if analyzed for a certain period. If production includes all its capacities and forces to the maximum and seeks to reach a decent level, this is reflected in the market, giving players good conditions for exchange activities. It should also be noted such an economic tool as the consumer price index. It clearly shows the price dynamics and the change in prices for consumer goods (about 200 titles). Such data characterize the country's earnings. Is it in the black or the loss zone? Special attention is given to exports: it demonstrates the strength or weakness of the national currency. The forex market is a powerful mechanism, which is affected by various factors. All of them are subject to trends, but for the player, it is necessary and extremely important to understand the significance of the factor considered separately. He successfully uses this information for forex forecasting, evaluating the data of the instruments, either individually or in combination for the best result.
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Evaluation of current events, news and events, as well as assessing the economic situation in the country is the leading economic forex indicator, which is successfully applied by participants in the foreign exchange market, analyzing and making forecasts.

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