Key Factors Influencing Forex Market

Gross domestic product (GDP) can be determined in three ways, all which should, in principle, give the same result. They are the production (or output or value added) approach, the income approach, or the speculated expenditure approach.

Mentioned a list of some important countries and dependent territories sorted by their real gross domestic product growth rate; the rate of growth of the value of all final goods and services produced within a state in 2018.

Country GDP Rate

USA 3.5%
UK 1.2%
Australia 2.2%
Japan 1.5%
Canada 3.0%
Germany 2.1%

                                   Why USD is the KING of All Currency ?

The Purchasing Managers’ Index (PMI) is an indicator of economic health for manufacturing and service sectors. The purpose of the PMI is to provide information about current business conditions to company decision makers, analysts and purchasing managers.

The PMI is made up of several different surveys that include a number of elements such as:

  •  New orders
  •  Factory orders
  •  Employment levels
  •  Supplier’s delivery times
  •  Inventories

                                     If we Split all the money in the world ?

Bank Rate is the interest rate at which a nation’s central bank lends money to domestic banks, often in the form of very short-term loans. Managing the bank rate is a method by which central banks affect economic activity. Lower bank rates can help to expand the economy by lowering the cost of funds for borrowers, and higher bank rates help to reign in the economy when inflation is higher than desired.

Mentioned a list of some important countries interest rates; the rate of interest following by banks in 2018.

Country Bank Rate

USA 1.75%
UK 0.75%
Australia 1.50%
Japan -0.10%
Canada 1.75%
Switzerland -0.75%

Forex Currency Nickname !

The Non-Farm Payroll (NFP) also called Employment Change, the report is a key economic indicator for the United States. It is intended to represent the total number of paid workers in the U.S. minus farm employees, government employees, private household employees and employees of nonprofit organizations. Released monthly, usually on the first Friday after the month ends;.

Mentioned a list of last five months; the rate of NFP:

Date    NFP Report

Nov 2, 2018 250K
Oct 5, 2018 134K
Sep 7, 2018 201K
Aug 3, 2018 157K
Jul 6, 2018 213K

                                               Top Eight currency Ranking ?

Unemployment data is the share of the labor force that is jobless, expressed as a percentage. It is a lagging indicator, meaning that it generally rises or falls in the wake of changing economic conditions, rather than anticipating them. When the economy is growing at a healthy rate and jobs are relatively plentiful, it can be expected to fall.

Mentioned a list of some important countries unemployment rates  in 2018.

Country Unemployment Rate

USA 3.7%
UK 4.0%
Australia 5.3%
Japan 2.3%
Canada 5.8%
Euro   8.1%

                                            Who are all Participate Forex Market ?

Retail sales are an aggregated measure of the sales of retail goods over a stated period. The measure is typically based on a data sampling that is extrapolated to model an entire country. Because retail sales are a measure of consumer demand for finished goods, they are an indicator of the pulse of an economy and its projected path toward expansion or contraction. As a leading macroeconomic indicator, healthy retail sales figures typically elicit positive movements in equity markets.

Mentioned a list of some important countries retail sales rates month on month in October, 2018.

Country Retail Sales Rate

USA 4.6%
UK 2.2%
Australia 3.5%
Japan 3.5%
Canada 3.8%
Euro     1.5%

                                        Bank Asset vs Forex Market !

President of Bank – Speeches

The central (reserver) bank which controls short term interest rates, he has more influence over the nation’s currency value than any other person. Traders scrutinize his public engagements as they are often used to drop subtle clues regarding future monetary policy. The head of central bank called President or Governor, who is authorised person and gives speech about the rates, policy changes and economic reports.

Country Bank President/Governor

USA Federal Reserve Jerome Powell
UK Bank of England Mark Carney
Europe European Central Bank Mario Draghi
Australia Reserve Bank of Australia Philip Lowe
Canada Bank of Canada Stephen Poloz

Important Fundamental Events !

FOMC

The FOMC is the principal organ of United States national monetary policy. The Committee sets monetary policy by specifying the short-term objective for the Fed’s open market operations, which is usually a target level for the federal funds rate. It is a committee within the Federal Reserve System, is charged under the United States law with overseeing the nation’s open market operations . This Federal Reserve committee makes key decisions about interest rates and the growth of the United States money supply.

Scheduled eight times per year, three weeks after the Federal Funds Rate is announced.

FOMC Meeting Minutes (2018)
Oct 17, 2018
Aug 22, 2018
Jul 5, 2018
May 23, 2018
Apr 11, 2018
Feb 21, 2018
Jan 3, 2018

Daily Average Movement – Major Currency List !

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