The most important economic indicators affecting Forex market

Gross domestic product GDP: one of the most important economic indicators that impact directly on the economy of the State and thus on its currency and economic position, which in turn affects the strength and movement of currency in circulation, GDP is a measure of the State’s economic situation reflects the value of goods and services produced in a given time period. A positive relationship between the GDP and the level of improvement in the economy of the country, the higher the value of GDP, that would be in the interest of the country and the economy improves, and vice versa if I said the value of gross domestic product.

Inflation: inflation reflects a rise in the general price level and weak purchasing power of the currency and increase the price of a given product is worth purchasing less and affects inflation mainly on the economy and, of course, will affect the exchange market for its close link with the value of the currency.

CPI: consumer price index is the index measures the price of goods consumed by individuals including major consumer dependence treatment necessary. A positive relationship between the consumer price index and the currency value, the higher the value of the consumer price index has increased with the value of the currency and thus may change value against other currencies in the trading markets.

Interest rate: the interest rate or the amount of interest on funds for investors and is an important tool, but the Central Bank to control the value of the currency in addition to the forces of supply and demand the President to control interest rates, the Central Bank used sometimes to raise or lower the interest to attract or abandoned investors buy or sell currency by rate its usefulness, so a positive relationship between the value of the currency if the interest rate is less demand for the currency and value.

The balance of trade is the difference between exports and imports of a country, in the case of exports, imports, there was a trade surplus have if imports to exports, there is a trade deficit has. A positive relationship between trade and the currency value, the higher the trade balance has improved the economy and thus increased the value of the currency and vice versa if the weakened value of the balance of trade in that country.

Unemployment rate: theratioof unemployedtothe total populationin thecountry.Index and the unemployment rate is a sensitive indicator of the President and in turn the economy of that country, an inverse relationship between the unemployment rate and the value of the currency of that country, the higher the rate of unemployment was bad for the economy and said the value of the currency and of course will be reflected on the movement of the currency pairs in the Forex market if the change in the unemployment rate of output.

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