Economic news and important political events have the power to trigger big movements in the forex markets. By analyzing it, you can better understand how the markets are likely to move in the future. When examining data, you should study the previous results and forecast results and then compare them with the actual results. Movements in the market happen when there is a difference between market expectations based on the previous and forecast results and the actual result.
Interest rates: Each currency has a daily interest rate determined by the nation’s central bank. Lower interest rates can cause the value of the national currency to weaken. Higher interest rates can cause the currency to strengthen
Economic Indicators: Growth indicators like GDP, inflation indicators like PPI — Producer Price Index, CPI — Consumer Price Index, and construction indices can all have an important impact on the currency markets. When the latest news is released, rise in the value of any of these indicators can be a signal that interest rates are likely to rise.
Employment Indices: The unemployment rate is an important measure of economic strength. High unemployment rates suggest that a nation’s economy is weakening and can cause its currency to also to weaken.
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