Economic News Announcements to Consider During Your Forex Trading Course


The price movement descriptions in this article are in their simplest forms and do not take into consideration any other factor. During your Forex trading course you will learn that there are other factors to consider when predicting price movement but for the sake of explanation they are not included in this article.

The most important thing to remember with economic news is that only unexpected news moves the markets.

1 – GDP and GNP

Gross Domestic Product (GDP) is a measure of the total value that a country outputs i.e. a reading of all economic activity. The Gross National Product (GNP) is the same as the GDP but it also takes into account a country’s earnings from overseas. To simplify, the GNP measures all the money made by the country’s residents regardless of where in the world they make it. This means that: More details please visit:-https://metatron-nw.com/ https://laganews.net/ https://kernpioneer.org/ https://thepulplist.com/ https://wikiowl.com/ https://eldredgrove.com/ https://kennygorman.com/

· A currency value will increase with an increase in GDP / GNP

· A currency value will decrease with a decrease in GDP / GNP

GDP and GNP are easily calculated and the forecast happens ahead of the news report and so figures only move the markets when the report includes a large difference compared to expected results.

2 – Producer Price Index (PPI)

In your Forex trading course you will learn that these are the prices that producers charge to the retail sector. This is an important indicator as it directly relates to the retail prices charged to the consumer – you. The market is very sensitive to this and unexpected change in the PPI. This means that:

· A currency value will increase with an increase in PPI

· A currency value will decrease with a decrease in PPI

PPI is also affected by overlying commodity prices as this raises the cost of production and therefore the amount charged by producers to retailers.

3 – Industrial Production

This is a set of numbers that show the total monthly output of a country’s entire industrial output including factories, mines and utilities. You should have learnt in your Forex trading course that Increasing numbers in industrial production is a strong indicator of economic growth. This means that:

· A currency value will increase with an increase in Industrial Production

· A currency value will decrease with a decrease in Industrial Production

4 – Unemployment

You will come across unemployment news throughout your Forex trading course as this is the most watched news announcement by most market participants. High unemployment indicates low growth for a country, this is down to the fact that the more unemployed there are in a country the less disposable income and lower spending there is.

Governments use interest rates to try and stimulate spending through lowering interest rates and the cost of borrowing. This means that:

· A currency value will increase with a decrease in Unemployment

· A currency value will decrease with a increase in Unemployment

There is a positive correlation between inflation and earnings. The more buying power within an economy the more demand from consumers thus fuelling increases in retail prices.

5 – Retail Sales

The total amount of merchandise sold with the retail sector of an economy. It is not made up of the sales of every single retailer, but a sample from across a spectrum of companies. The greater the retail sales the higher the spending within an economy. This should increase profits for corporations, greater job stability and a more upwards and positive market sentiment. This means that:

· A currency value will increase with an increase in Retail Sales

· A currency value will decrease with a decrease in Retail Sales


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