Thursday, August 13, 2009

What are the most powerful figures that move Forex market ?

1.Interest rate:-

Traditionally, if a country raises its interest rates, its currency will strengthen because investors will shift their assets to that country to gain higher returns.

2.Employment:-

situationDecreases in the payroll employment are considered as signs of a weak economic activity that could eventually lead to lower interest rates, which has negative impact on the currency.

3.Trade balance, budget and treasury budget:-

A country that has a significant Trade Balance deficit will generally have a weak currency as there will be continuous commercial sellings of its currency.

4.Gross Domestic Product (GDP) :-

GDP is reported quarterly and is followed very closely as it is a primary indicator of the strength of economic activity. A high GDP figure is usually followed by expectations of higher interest rates, which is mostly positive for the currency.

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