Economic indicator

Forex School

Economic indicator


1 Gross domestic product, and ( GDP )

  GDP Refers to a State in whose territory a certain period production of all the final product and service value, mainly by consumption, private investment, government spending and net exports consists of four parts. GDP value and is closely linked to economic growth, reflecting a country's overall economic situation is good or bad, by most Western economists as the " most comprehensive measures of economic dynamism " . Under normal circumstances, if the GDP data growth, it indicates that the booming economy, income increase and dollar exchange rates ; Instead, interest pale.

  2 And industrial production ( INDUSTRIAL PRODUCTION )

Accounted for a large proportion in the GDP, industrial production sector within a certain time of a State the total value of production of all industrial products, and exchange rate were positively correlated, especially as represented by the manufacturing industry.

  3 And the unemployment rate

In General, the unemployment rate is a barometer of a country's economic development, and is closely linked to economic cycles. Increase economic development, otherwise good. For most Western countries, unemployment in 4% around normal levels, but if more than 9% , then the economy is in a recession.

  4 , Trade deficit ( TRADE DIFICIT )

When the country's exports over imports as trade surplus ; Instead, deficits. According to statistics, trade data in the United States has been in a deficit State, its focus is on the increase or decrease of the deficit. Deficit does not favor the dollar, otherwise good. International trade is an important component of global economic activity.

  5  Current account

Current accounts as a major item on the balance sheet, mainly used for records a country's economic ties with other countries, including commodities / Import and export of labor services other goods and services, investment income, income, and unilateral transfers arising from the outflow and inflow of funds. Hold value is positive, or surplus, good for the local currency, instead will let the national currency under pressure.

  6 , Capital account income and expenditure

Used to describe a State of long-term and short-term capital flows, including long-term capital, the non-liquidity of short-term private capital, special drawing rights, errors and omissions, as well as the liquidity of short-term private capital and other projects. In the current international environment, the capital account balance as much as the current account projects, its method of the observation of the effect of exchange rates and the current account is basically the same.

  7 , Interest rate

Refers to the return or lend money price. One country has a direct impact on the rate of currency exchange rate. Higher returns on the currency because of the high interest rates, increased demand, exchange rate appreciation ; Instead, the devaluation. US Federal funds rate by the Federal Reserve's meeting to decide.

  8 , Production price index ( PPI )

Used to measure changes in prices of goods in different stages of production. Value rises that produces strong, inflation on the rise, fed likely to raise interest rates and dollar ; The other hand, is bad for the dollar.

  9 And the consumer price index ( CPI )

As its name suggests, and metrics related to the farming life of residents, is the discussion of inflation during the most important data. Rose, inflation is likely to rise, the Fed tends to raise interest rates, good for the dollar ; Conversely, negative dollars. But you need to know is that it is desirable to maintain a certain level of inflation, too high or too low interest rates are negative.

  10 And the wholesale ( Wholesale ) Price index ( WPI )

Compiled based on the weighted average price of bulk goods at wholesale prices and of the price index. When discussing inflation, one of the three most often mentioned price index, observation methods and the CPI and the PPI is basically the same.

  11 , Personal income

Refers to an individual's income combined. Includes wages and salaries, social benefits, expense savings, dividends, etc. Data to improve on behalf of economic upturn, consumption is likely to increase, is good for their money ; Otherwise, negative.

  12 , Business inventories

To assess the status of production cycle, including the factory inventory, wholesale trade, retail inventory. When inventory falls below a certain size, indicates the economy is good, is good for their money, otherwise their currencies come under pressure.

  13 , Leading indicators

Leading indicators are valued, consumer goods orders, heavyivy unemployment claims, building, consumer expectations, manufacturers orders delivery changes, money supply, sales and other related articles, is to observe the national economy within the next six months or even a year to target data exchange rates rise, bad data is the exchange rate to fall.

  14 And the purchasing managers ' index

An important index to measure manufacturing, primarily manufacturing-related cases investigated. Usually the index to 50 as the demarcation point, greater than 50 to good manufacturing, boosting local currency ; Conversely bad for the local currency.