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4 Datas Affecting The Foreign Exchange Market

4 Datas Affecting The Foreign Exchange Market


Novices want to invest in foreign exchange! What data should they pay attention to?

The factors that affect the foreign exchange market can be mainly divided into 4, such as Non-farm Payrolls, Consumer Price Index(CPI), Gross Domestic Product(GDP) and interest rate of central banks of various countries. Novices can better grasp the exchange rate trends of various countries and seize trading opportunities by observing these economic indicators!

So, how will these data affect the foreign exchange market? Let’s learn it now!

malaysia forex trading time-HXFXglobal-4 Datas Affecting The Foreign Exchange Market

Non-farm Payrolls

Mainly explain the non-agricultural employment, unemployment rate and other data, reflecting the national income and expenditure, employment and unemployment. A drop in employment and an increase in the unemployment rate indicate that economic development is hindered, and vice versa.
This data is released by the U.S. Department of Labor and is released on the first Friday of each month at 21:30 DST at 20:30 DST.

Consumer Price Index(CPI)

If the consumer price index rises, inflation may rise, and the Fed tends to raise interest rates, which is good for the dollar. But hyperinflation or deflation is not good for the exchange rate.
The data is released by the US Bureau of Labor at 23:00 on the third week of each month.

Gross Domestic Product (GDP)

The steady growth of the data indicates that the economy is booming and the national income has increased, which is favorable for the dollar exchange rate. If GDP falls for two consecutive quarters, it is considered a recession.

Interest Rate

The level of interest rates will affect whether the country’s capital market is favored, which will also affect the direction of the currency exchange rate. A currency with a high interest rate increases the demand for the currency in the country due to its higher rate of return, and the exchange rate appreciates.

U.S. interest rates are determined by Fed, which generally holds a two-day policy meeting in the first half of the month.

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Disclaimer: Information above can only be use for references and doesn’t represent our platform’s opinions.

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