What is the Role of Economic Indicators in the Forex Market
18
en.fxdailyinfo.com
  • 1
  • 2
19
7

What is the Role of Economic Indicators in the Forex Market

What is the Role of Economic Indicators in the Forex Market

The forex market is highly volatile. Numerous economic factors create this ongoing volatility. These factors occur due to changes in the policies of governments and/or private organizations. These changes influence the forex market and indicate movements in currency. These are basically indicators that can be used to assess the economic performance of a nation.

Forex Market: Economic Indicators

The following are the major economic indicators that play a significant role in the forex market:

Current State of Affairs

These include statistics regarding unemployment and housing in a country. If this statistic is good, it will positively affect the rate of the country’s currency. However, if the current state of affairs in a country characterizes political upheaval, high unemployment, and inflation, it will adversely impact the prices of Forex.

Retail Sales Reports

This economic indicator is widely used to analyze Forex. These reports comprise the total receipt of retails stores throughout a country. It actually measures samples of diverse stores and not every single sale. This economic indicator is also used to analyze consumer spending patterns.

Gross Domestic Product (GDP)

This is one of the biggest measures affecting a country’s economy. It is the total market value in terms of goods and services produced in a country in a given year. While forecasting the currency rate changes, this indicator is used in combination with certain other elements. This is because it is a measurable factor that does not remain the same, even when the economy has started following a certain economic trend.

Industrial Production Report

This is one of the most reliable economic indicators. This report includes volatility in the production of factories, utilities, mines, and other such industries. The report compares the actual against production capacity that can be achieved during a certain period when production is at par with the maximum capacity, the rate of the Forex rises, which is a good signal for traders.

Consumer Price Index (CPI)

This is used to measure the change in the price level of consumer goods and services in 200 categories. It indicates whether a country is earning profits or facing losses in these categories. The number of exports of the country also plays an important role in determining this indicator. This is because the number of exports can judge a currency’s weakness or strength.

Factors affecting the forex market typically follow a certain trend. This makes it important to understand the function of each factor in forecasting currency rates. While advising traders, forex brokers usually look at economic indicators and trends.

The promotion is published here only for an informative purpose, THIS IS NOT FINANCIAL ADVICE!
Forex Analyst

Fxdailyinfo.com

Fxdailyinfo have large portion of news for Live, Demo and weekly contest which is very helpful for all type of Traders. Broker houses offer Live contest

Recent Comments

Write a Comment

Related Bonus

65% FXChoice Bonus on Crypto Deposit
65% FXChoice Bonus on Crypto Deposit
02 December 2022 11:56 PM
FXChoice $30 Non-Deposit Forex Bonus
FXChoice $30 Non-Deposit Forex Bonus
30 November 2022 01:37 PM
50% FXChoice Welcome Deposit Bonus
50% FXChoice Welcome Deposit Bonus
30 November 2022 11:34 AM
Bull Sphere $30 Free Welcome Bonus
Bull Sphere $30 Free Welcome Bonus
29 November 2022 10:01 PM
RoboForex Welcome Bonus 30 USD
RoboForex Welcome Bonus 30 USD
29 November 2022 03:19 PM
50% Bonus on Each Deposit - OctaFX
50% Bonus on Each Deposit - OctaFX
28 November 2022 08:06 AM
$35 HotForex (HFM) No Deposit Bonus
$35 HotForex (HFM) No Deposit Bonus
27 November 2022 11:04 AM
25% Rescue bonus on your next deposit
25% Rescue bonus on your next deposit
25 November 2022 12:38 PM

Forex Featured Brokers

FXChoice

65% Crypto Bonus, Min: Deposit: 100 USD, Broker Type: STP/NDD,
50% Welcome Bonus

Start Trading View Profile »
OctaFX

Free Trading Signals, Broker Type : STP/ECN Leverage up to 1:1000,
50% Deposit Bonus

Start Trading View Profile »
HF Markets

Minimum Deposit $5, Leverage up to 1:1000 Broker: STP/ECN/NDD,
100% Trading Bonus

Start Trading View Profile »
RoboForex

Minimum Deposit $200, Leverage up to 1:1000, Broker Type: ECN/STP,
30 USD Free Bonus

Start Trading View Profile »
FXTRADING.com

50% Trading Bonus, Broker Type: STP/ECN, Leverage up to 1:500,
$600 Welcome Bonus

Start Trading View Profile »
ATFX

Leverage up to 1:400, Minimum Deposit $100, Broker Type: NDD,
50% Deposit Bonus

Start Trading View Profile »
65% FXChoice Bonus on Crypto Deposit
04 December 2022 08:27 AM
FXChoice $30 Non-Deposit Forex Bonus
04 December 2022 09:16 AM
50% FXChoice Welcome Deposit Bonus
04 December 2022 12:59 AM
Bull Sphere $30 Free Welcome Bonus
04 December 2022 09:19 AM
RoboForex Welcome Bonus 30 USD
04 December 2022 08:52 AM
50% Bonus on Each Deposit - OctaFX
04 December 2022 12:56 AM
$35 HotForex (HFM) No Deposit Bonus
04 December 2022 09:16 AM
25% Rescue bonus on your next deposit
03 December 2022 11:06 AM
ATFX $100 Welcome Credit Bonus
04 December 2022 08:41 AM
HFM $50 Forex No Deposit Bonus
04 December 2022 12:27 AM
FXChoice $30 No Deposit Bonus now
04 December 2022 09:20 AM
Welcome Bonus up to $500 ForexChief
04 December 2022 06:25 AM

Do you have forex new bonus or promotion?

Tell us your bonus or promotion FOR FREE. It is easier than you think!
Add Promotion!


moneta_footer.png
Best MT4 Broker
with lowest cost
Exclusive Access to
PRO Trader Tools
Free Trading
Signals
25% Rescue
Bonus New
Zero Swap Fees
on Gold