You want to learn more about the forex market? You want to become a professional and effective forex trader. This requires you to research, fully and continuously update about the forex market and the factors that affect it.
Primexbt with its solid foundation, complete set of indicator tools, safe environment and many expert analysts….provides you with price movements, trading history, variety of commodities, up-to-date signal indicators every second, every minute, every hour. However, news about the forex market, you yourself have to research and analyze as well as learn from the experience of experts.
In this article, Primexbt trading will give you the important factors that greatly affect the forex market. Let’s go through it together.
The Bureau of Economic Analysis (BEA) and the US Census Bureau will be responsible for synthesizing, analyzing and reporting data on the trade balance on a monthly, quarterly, and annual basis to provide detailed information to investors. investors in import and export activities.
– Trade deficit is bad news for USD and vice versa good news for foreign currencies, because it means people are in high demand for foreign goods. And foreign goods will be bought in foreign currency, thus creating a higher demand for foreign currency.
-On the other hand, a trade surplus means that foreign consumers are buying more American goods, which leads to an increase in demand for the US dollar which means it is good news for the US dollar. .
The US Bureau of Labor Statistics (BLS) is responsible for publishing the Nonfarm Payrolls report, or Nonfarm, which tracks the number of new jobs created or lost each month. The fact that the economy has more jobs shows that foreign investors will focus more, invest in more and mean that the demand for the dollar increases. Conversely, if job losses are severe, it could push interest rates lower and weaken the dollar. Nonfarm Payroll – Nonfarm is released at 8:30 am – Friday after the end of the month (EST).
Gross Domestic Product
Gross Domestic Product, or GDP, is data that tracks the monetary value of all finished goods and services produced within a country’s borders during a specific period of time and used as a measure of a country’s “health”.
Similar to Nonfarm, if GDP increases, interest rates tend to rise. Higher interest rates attract foreign investors and as a result the dollar strengthens. Similarly, if GDP falls, the dollar will fall. The Bureau of Economic Analysis will release GDP data at 8:30 a.m. on the last day of each quarter (EST).
The retail sales index is a composite measure of retail sales of goods over a period of time. Increasing retail sales shows us a growing economy, and vice versa.
The Retail Sales Index is released monthly by the Census Bureau and the Department of Commerce. The report is released at 8:30 a.m. (EST) on the 13th of the month.
Industrial production figures are based on the quantity of raw goods produced by industrial companies such as factories, mines, and power companies in the US. Industrial production data often reflects similar changes in overall economic activity, if the data is a bullish number then a bullish sign for the USD and vice versa.
The Federal Reserve releases industrial production data at 9:15 a.m. (EST) on the 16th of each month.
In addition to the above 5 forex news, report inflation, sell houses and buy US Treasuries. These news also affect the US dollar.
Stable policy, stable politics and tax cuts for consumers from the government are positive news for the USD.
On the other hand, terrorist attacks, wars that increase government spending are all bad news for the dollar.
Developments in other countries are bad news for the dollar, while instability abroad is good news for the dollar.
Understanding the positive or negative factors of the forex market will help you invest and trade more effectively.