Learning
Forex: Action buyers and sellers around the world who participated in
the movement of foreign exchange worth billions of dollars every day. In fact, trading forex / forex has become a global activity when the economic events play a greater role in the forex market.
Here we will learn about some of the economic trends and events for those who are new to forex.
The forex market is mainly driven by macro-economic factors that affect the decision of the trader to determine the value of a currency at a specific time (follow the forex trading education). The economic health of a country is an important factor in the value of its currency due to the many economic events and information that can be changed every day. In turn, this will affect the price pegerakan.
Let's take a closer look, four factors affecting the change of currency rate movement.
Capital market
The capital market is the most visible indicator of a country's economic health related. Strengthening or the fall in the stock market of the country is usually the economic signals in the eyes of investors.
Forex traders rely heavily on economic data that in many cases the same economic data will have an influence on market movements.
International tradeThe level of trade between countries representing a request for goods or services of a country. The higher the demand will typically have an impact on strengthening the country's currency. Example: to buy goods from Australia, an importer who came from outside Australia should convert their currency into Australian dollars (AUD). It will also increase the demand for the AUD, so it will give effect to the strengthening of the AUD.
Surplus and deficit balance of trade is an example of economic data of a country in terms of international trade. If the surplus increases - or decreases the deficit - then the country's currency will usually be strengthened. Conversely, if the reduced surplus - or deficit increases - it is usually the country's currency will weaken.
political conditions
The political situation of a country also plays a major role in the country's economic prospects and will have an impact on its currency. Forex traders will continue to monitor the news and political events to gauge the economy associated with currency.
Election is a great event for the currency. The exchange rate strengthened if the parties have a program and a good influence for the economy came out as the winner of the election. In short, if the election winner is the one who "coveted" by the market, then the country's currency will strengthen.
Fiscal and monetary policy of the government is the most important factor in economic decision making. The central bank's decision on interest rates that the sharp impact also affects the forex market.
Economic reportsReport economic calendar is very important when prices move fast in the market. The report on the GDP (Gross Domestic Product) or GDP (Gross Domestic Product) is perhaps the most obvious economic data, because it is the basis of a country's economic strength.
Inflation is also a very important indicator because it is an indication of an increase in prices and purchasing power. However, inflation is a double-edged sword where often there is pressure on the currency when purchasing power declines. On the other hand, it can also lead to currency appreciation because it may force the central bank to raise interest rates in order to control inflation.
Other reports such as the employment sector also carry important information about the economic power of a country. One job sector data that are excellent in forex trading is the Non-Farm Payrolls Data AS.
The forex market is mainly driven by macro-economic factors that affect the decision of the trader to determine the value of a currency at a specific time (follow the forex trading education). The economic health of a country is an important factor in the value of its currency due to the many economic events and information that can be changed every day. In turn, this will affect the price pegerakan.
Let's take a closer look, four factors affecting the change of currency rate movement.
Capital market
The capital market is the most visible indicator of a country's economic health related. Strengthening or the fall in the stock market of the country is usually the economic signals in the eyes of investors.
Forex traders rely heavily on economic data that in many cases the same economic data will have an influence on market movements.
International tradeThe level of trade between countries representing a request for goods or services of a country. The higher the demand will typically have an impact on strengthening the country's currency. Example: to buy goods from Australia, an importer who came from outside Australia should convert their currency into Australian dollars (AUD). It will also increase the demand for the AUD, so it will give effect to the strengthening of the AUD.
Surplus and deficit balance of trade is an example of economic data of a country in terms of international trade. If the surplus increases - or decreases the deficit - then the country's currency will usually be strengthened. Conversely, if the reduced surplus - or deficit increases - it is usually the country's currency will weaken.
political conditions
The political situation of a country also plays a major role in the country's economic prospects and will have an impact on its currency. Forex traders will continue to monitor the news and political events to gauge the economy associated with currency.
Election is a great event for the currency. The exchange rate strengthened if the parties have a program and a good influence for the economy came out as the winner of the election. In short, if the election winner is the one who "coveted" by the market, then the country's currency will strengthen.
Fiscal and monetary policy of the government is the most important factor in economic decision making. The central bank's decision on interest rates that the sharp impact also affects the forex market.
Economic reportsReport economic calendar is very important when prices move fast in the market. The report on the GDP (Gross Domestic Product) or GDP (Gross Domestic Product) is perhaps the most obvious economic data, because it is the basis of a country's economic strength.
Inflation is also a very important indicator because it is an indication of an increase in prices and purchasing power. However, inflation is a double-edged sword where often there is pressure on the currency when purchasing power declines. On the other hand, it can also lead to currency appreciation because it may force the central bank to raise interest rates in order to control inflation.
Other reports such as the employment sector also carry important information about the economic power of a country. One job sector data that are excellent in forex trading is the Non-Farm Payrolls Data AS.
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