How to analyze economic data in Forex speculation
How to analyze economic data for speculation cashbackforexbtc forex? (1) GDP East forex cashback the gross domestic product, which refers to the combined value of goods forexcashbackcalculator services available for consumption throughout the year, and it measures the overall production capacity of a countrys economy If GDP increases Eastforexcashback 1% over the previous year, that is equivalent to saying that the annual growth cashback forex of the economy is 1% But the value of goods and services reflected in the form of prices is affected by inflation will also rise Therefore, economists like to use real growth to measure If a countrys economic growth rate is nominally 7% and the inflation rate is 5%, then the real growth rate is 2% per year. However, when comparing the growth rates of different countries, we should take into account the different economic bases of each country, such as the United States, Japan and other large economies, a growth rate of about 3% can be considered very good; while a smaller economy like China, if the growth rate is only 3%, it cannot be considered a good economic development (2) PPI: Producer Price Index, which indicates the price of raw materials, can be used to measure the price changes of various commodities at different stages of production. For example, the data published in the United States are calculated using the index of 1967 as 100, which is published by the U.S. Department of Labor, once a month. (3) CPI: This is the abbreviation for Consumer Price Index This index reflects the change in the price of goods and services paid by consumers This index is also an indicator often referred to by the U.S. Federal Reserve Board U.S. Federal Reserve Board Chairman Alan Greenspan uses it to measure domestic inflation in the United States. Use it to measure the domestic inflation in the United States to what extent, whether to raise or reduce interest rates to control the U.S. economy method This index is published in the United States by the Department of Labor once a month after the statistics, we should pay attention to when this index rises, showing that the inflation rate in this area has risen, indicating that the purchasing power of the currency has decreased theoretically bad for the currency, may cause the devaluation of this currency currently (4) RPI is the Retail Price Index. In the U.S., this data is collected by the U.S. Department of Commerce in a monthly national business survey of a sample of retail goods paid for in cash or by credit card, including If the economy is growing rapidly, personal consumption will increase and oversupply will lead to higher prices, and this index will rise, which will bring inflationary pressure later on. Ministry of Labor statistics, published once a month by the national government through a sample of households in the country to determine the employment situation of the countrys entire working population in the month if there is a willingness to work, but not employed this figure, is the unemployment rate This indicator is a very important economic indicators to the eurozone for example: when the euro started, the unemployment rate of the EU countries in more than 10%, higher than the United States, and led to the euro all the way In early November, Japans unemployment rate fell from 5.5% to 5.4%, the yen thus broke through the 121 barrier to 119 water (6) foreign trade balance figures: this is a measure of commodity trade between countries, constituting an important part of economic activity if a countrys total imports are greater than exports, which is a trade deficit, and vice versa, is a surplus if a countrys trade often appears deficit, the probability of devaluation of this countrys currency will be high because a devaluation of the currency will make the export of goods more competitive, and conversely, it is bullish for the currency (7) Inflation: refers to the increase in the general price level of a country and the corresponding decrease in the purchasing power of the countrys currency Simply put, if the inflation rate is 10%, a commodity worth $100 will go up to $110 after one year, and after another year, 121 This is the fundamental reason why we must use part of our assets to engage in high-risk, high-return investments rather than simply keeping our money in the bank. Economists divide inflation into two categories: demand-pull and cost-push inflation. The former occurs mainly when consumption in a countrys economy exceeds its productive capacity, while the latter is mainly triggered by increases in nominal wages or by non-wage factors such as rising raw material and energy prices. By paying close attention to a countrys regularly published inflation indicators - inflation rate, consumer price index, harmonized consumer price index (the main inflation measure in the euro area), etc. - we can roughly infer whether the countrys central bank is inclined to raise or lower interest rates, and thus the trend of the countrys currency It is worth noting that if inflation is caused by some unexpected events or seasonal factors ( For example, if OPEC raises oil prices significantly, or if the winter in the United States is much colder than in previous years, leading to a surge in demand for crude oil that raises the overall price level), it is unlikely that inflation can be controlled by raising interest rates. The deficit gap is usually made up by the government through borrowing. The impact of this indicator on the exchange rate is more complex: in general, deficit finance in times of economic downturn or even recession can help boost the economy, thus potentially stimulating the exchange rate of a countrys currency to rise. (9) Composite Leading Indicator: This is an indicator used to forecast economic activity in the United States, for example, the U.S. Department of Commerce is responsible for collecting information, including stock prices, new orders for consumer goods, average weekly unemployment benefit construction, consumer expectations, changes in manufacturers outstanding orders, money supply, sales, production and sales of raw materials, plant equipment and average workweek. Economists can use this indicator to determine the future direction of the countrys economy. If the leading indicator rises, it indicates that the countrys economy is growing, which is good for the appreciation of the countrys currency.