Statistics help CFD traders monitor the pulse of the economy and almost all workers in the financial markets follow it regularly. The most important macroeconomic indicators that affect price movements are :
Announcement of interest rates
Interest rates play the most important role in moving currency rates in the foreign exchange market as the institutions that set interest rates, central banks are therefore the most influential factors and interest rates dictate investment flows and since currencies are considered representative of the country’s economy, differences in interest rates affect the relative value of currencies With regard to the relationship between each other, when central banks change interest rates, they cause movement and volatility in the foreign exchange market and in the field of foreign exchange trading, and accurate forecasting of the actions of central banks can enhance the chances of traders to achieve successful trading operations.
Gross National Product
Gross National Product (GNP) is the broadest measure of a country’s economy and represents the total market value of all goods and services produced by a country in a given year. National (Advance Report and Preliminary Report) Significant differences between these two reports can lead to extreme fluctuations.
Consumer Price Index
Most likely, the consumer price index is the most important inflation indicator, and it represents the change in the level of retail prices for the basic basket of consumers. Inflation is directly related to the purchasing power of a currency within its borders and affects its position in global markets. If the economy develops in normal conditions, an increase in the consumer price index can lead This will lead to an increase in the basic interest rates and, in turn, this will lead to an increase in the attractiveness of a currency.
Employment indicators reflect the overall health of an economy or business cycle. In order to understand how an economy is performing, it is important to know how many jobs are being created or written off, the percentage of the labor force that is actually employed, and how many new people are joining unemployment to measure inflation. It is also important to monitor the speed of wage growth.
The Retail Price Index is released on a monthly basis and is an important indicator for forex traders because it shows the overall strength of consumer spending and the success of retail stores. Most importantly, assess the immediate direction of an economy.
balance of payments
The balance of payments represents the ratio between the amount of payments received from abroad and the amount of payments issued abroad. In other words, it shows the total foreign exchange transactions and the balance of trade and the balance between exports and imports and remittances. If the incoming payments exceed the payments to other countries and international organizations then the balance of payments will be positive and the surplus is A favorite factor for the growth of national currencies.
Government fiscal and monetary policy
The stability of the economy, i.e. full employment, controlling inflation and balancing the balance of payments, is one of the goals that governments are trying to achieve by controlling financial and economic policies. Fiscal policy is linked to taxes and expenditures, while monetary policy is linked to financial markets and the provision of credit, money and other financial assets.
There are several economic indicators, and more special reports, that can be used to evaluate foreign exchange fundamentals and it is important to take the time to look at these numbers as well as understand their meaning and how they affect a nation’s economy.You can find out the times and results of this news through the economic calendar that TNFX provides to its clients.