Most influential economic indicators in the forex market
GDP GDP: One of the most important economic indicators that directly impact on a country’s economy and thus on its currency and economic status, which in turn affects the strength and movement of currency in circulation, and is considered the GDP measure of the economic situation of the state it reflects the value of domestic goods and services that are produced in a certain period of time. A positive relationship between GDP and the level of improvement in the country’s economy higher the value of GDP, it would be in the interests of the country and further improvement in the economy, and vice versa if I said GDP value.
Inflation: Inflation reflects the rise in the general price level and thus weakening the purchasing power of the currency and increase the price of a particular commodity has become worth less purchasing power, inflation and affect mainly on the economy and, of course, will affect Turn on the exchange market’s close association with the currency’s value.
CPI consumer price index: Is the index measures the price of products consumed by individuals, including major consumer Almmwad necessary rates. Is a direct relationship between the consumer price index and the value of the currency higher the value of the consumer price index has increased with the value of the currency and thus may occur to change its value against other currencies in the trading markets.
Interest rate: or the interest rate which is the interest on the funds offered to investors the value of an important tool in the hands of the Central Bank to control the currency’s value in addition to supply and demand controlling the president powers to interest rates, and the resort’s central bank sometimes raise or cut interest rates to attract or give up investors for the sale or purchase currency rate, according to their usefulness, and therefore is a direct relationship between them and the currency’s value if interest rates rose less demand for the currency and thus more valuable.
Trade Balance: is the difference between exports and imports in the country, in the case of exports, imports have increased, there is a trade surplus with imports but if the exports have increased, there is a trade deficit has. Is a direct relationship between the trade balance and the value of the currency more the trade balance increased further improvement in the economy and therefore increased the value of the currency, and vice versa if the weakened value of the balance of trade in that country.
Unemployment rate is the ratio of unemployed to the total population in the country. The index’s unemployment rate is the President and a sensitive indicator of the economy cycle to that country, the relationship inverse between the unemployment rate and the value of the currency of that country whenever the unemployment rate has increased it’s bad for the economy and therefore I value of the currency and of course will be reflected in turn on currency pairs movement in the trading market in the event of a change in gross unemployment rate.