The impact of economic indicators on individual foreign exchange transactions

  • 2023/2/26 7:16:28
  • read: 6
  • forextradingsessiontimes

Factors affect forex trading session timesg individual foreign forextradingmarket transactions include the impact of the balance of payments, the difference in inflation, the impact of interest cashback forexs, market expectations, the intervention of monetary authorities, etc. 1. The record of economic transactions between a country and other countries balance of payments forextradingtime reflected in the balance of payments statement, which is prepared according to the principle of double-entry accounting (2) the difference of inflation inflation refers to the general price level of a sustained general increase in the definition of: (1) inflation is not a short-term or one-time rise in the price level, but a sustained increase in the price level; (2) inflation does not refer to individual (2) inflation is not the rise in the price level of individual goods, but the rise in the general price level, i.e., the weighted average of the prices of all goods and services; (3) the extent of the rise in the price level that forms inflation depends on the sensitivity of economic agents to the rise in prices The difference between domestic and foreign inflation is the dominant factor in determining the long-term trend of the exchange rate, the ratio between the two countries under the conditions of a dishonored credit currency, is determined by the value represented by each Determined if inflation in one country is higher than in another, the currency of that country will tend to depreciate in the foreign exchange market; conversely, it will tend to appreciate (3) the impact of interest rates interest rate for short, is the ratio of the amount of interest to the principal amount borrowed in a certain period of time the so-called interest, is the remuneration for the alienation of money funds or the cost of using them the presence of interest, so that profits are divided into interest and the income of business owners need to pay attention to the development of interest rate policy in various countries (4) market expectations of the international financial market, the huge amount of lending capital, these lending capital to the worlds political, military, economic conditions have a high degree of sensitivity, the resulting expectations govern the direction of the flow of lending capital, the foreign exchange market to form a huge impact, the expected factors are the most important factors affecting the foreign exchange market in the short term (5) the intervention of the monetary authorities national monetary authorities in order to make Exchange rate to maintain the level desired by the government, will be direct intervention in the foreign exchange market to change the supply and demand situation in the foreign exchange market, this intervention, although not fundamentally change the long-term trend of the exchange rate, but the short-term trend of foreign exchange still has an important impact especially the yen, artificial intervention is extremely powerful, if not very sure then you can not do it! 2, the impact of economic indicators on individual foreign exchange transactions will be listed below Several more important economic data, data good or bad enough to lead to changes in the exchange rate can be said that the following indicators lead to the volatility of the exchange rate of at least 100 points or more (1) unemployment rate (UnemploymentRate) unemployment rate is also a sign of good or bad economic development unemployment rate increases, meaning that the economy is hampered; unemployment rate decreases, meaning that economic development momentum is enhanced (2) consumer Price Index (ConsumerPriceIndex, CPI) consumer price index mainly reflects the change in the price of goods or services paid by consumers, that is, the change in the level of inflation If the CPI rises significantly, in the short term, it will help interest rates rise, thus supporting the strong currency; in the long term, it is essentially a depreciation of the consumer price index published monthly by the U.S. Department of Labor It has two different consumer price indices: one is the consumer price index for employees and workers, referred to as CPIW; the other is the consumer price index for urban residents, referred to as CPIU As the CPIU index statistics are twice the scope of CPIW, it reflects the higher reference of consumer prices, and is therefore highly valued by market participants (3) consumer confidence index: refers to the desire of consumers to consume Indicates that the index increases, indicating that consumers are willing to spend, which is favorable to economic growth, and the exchange rate rises; the index decreases, indicating that consumers are not willing to spend, probably because of distrust of future economic growth, which is unfavorable to economic growth exchange rate decreases

comments

Links