Look over! These four major data affect foreign exchange investment
- 2023/2/25 18:22:00
- read: 6
We all know that cashback forex the foreign exchange investment industry forex trading session times dealing with data, no data to support the strong, it is equivalent to writing no arguments, no tools to do things, will not achieve anything Therefore, before making an investment, the following four major data is we must master the forextradingtime rate interest rate is an important factor affecting the exchange rate, but due to the impact of expected data, it is possible to be digested in advance When the economy is overheated forextradingmarket inflation rises, it raises interest rates and tightens credit; and when the overheated economy and inflation are under control, it lowers interest rates appropriately Real interest rate = nominal interest rate - inflation rate The relationship between interest rates and currency is often: interest rates rise, currency is strong; interest rates fall, currency is weak Gross Domestic Product (GDP) (initial, revised, final) GDP refers to the period in which GDP = consumption (C) + private investment (I) + government spending (G) + net exports (X) If a countrys GDP grows significantly, it means that the countrys economy is booming, national income is increasing, and consumption capacity is growing. In this case, the countrys central bank will likely raise interest rates and tighten the money supply, and the countrys good economic performance and rising interest rates will increase the attractiveness of the countrys currency. Conversely, if a countrys GDP growth is negative, indicating that the countrys economy is in recession and its spending power is reduced, the countrys central bank will likely cut interest rates to stimulate economic growth again. The interest rate decline combined with the economic performance, the attractiveness of the countrys currency will also be reduced unemployment rate / non-agricultural employment unemployment rate refers to a certain statistical period of the total employed population has the intention to work but not the ratio of the total workforce of the labor force has long been seen as an indicator of the overall economic situation, and in the United States it is one of the first economic data released each month, so foreign exchange It is the most sensitive monthly economic indicator in the market. In the absence of hyperinflation, a decrease in the unemployment rate indicates a healthy overall economic development, which is conducive to currency appreciation; if the opposite is true, a rise in the unemployment rate represents a slow economic development and thus does not create sufficient funds for the economy. If the unemployment rate is analyzed with the inflation indicators of the same period, it is possible to know whether the economy is overheating, whether it constitutes pressure to raise interest rates, or whether it is necessary to stimulate the development of the economy by reducing interest rates in anticipation of a sustained increase in interest rates, which is positive for the foreign exchange market. It mainly reflects the price changes of production materials and is used to measure price changes in the cost of various commodities at different stages of production. On the contrary, when the index falls, i.e., the prices of production materials have a tendency to fall in the production process, it will also affect the overall price level and weaken inflationary pressure. If the PPI is higher than expected, there is a possibility of inflation and the central bank may implement a tightening monetary policy, which will have a positive impact on the countrys currency. On the contrary, if the PPI falls, it will have the opposite effect.