What is Black Friday?
Black Friday is the shopping day after Thanksgiving, also considered as the first day of Christmas shopping season.
History of Black Friday:
As History reports, the term “Black Friday” was first recorded back in 1869 and it referred to the dark financial crisis following the crash of the gold market in the United States. The two Wall Street barons Jim Fisk and Jay Gould conspired to buy as much gold as they could and wanted to cause a surge in gold pricing and then sell their gold reserves for stellar profits, but their conspiracy was exposed on Friday, Sept. 24, 1869. The unraveling sent the stock market crumbling down and bankrupted everyone including farmers and millionaires.
Effects of Black Friday:
In stock markets, an impact will be there by boosting the share prices for short term. Later, the stock markets will move down. The investment in stocks will also be considerably low because the people save the money for shopping to celebrate Christmas. Retail Sales always has been a crucial economic indicator to gauge the overall health of a nation’s economy and calculating GDP and seeing the influence of Black Friday on retail sales, clearly indicates that Black Friday is no different from any economic indicator. On Black Friday, the retail sales will have a sale of $7 billion within 24 hours. The impact of Black Friday in forex markets will be zero as there are other factors like interest rate, GDP etc. As the retail sales moves up the GDP will develop and the economy will also improve. Naturally the currency value of that country will grow up temporarily.