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Foreign exchange investment must understand the four data and eight laws

{}Posted in2023/2/24 22:55:59 | 3Browse

In the f fxrebatecentralancial market, bestforexrebatecompany best forex rebate company very important, data is often interlocked, closely linked, therefore, in the foreign exchange investment before, these four data you must recognize We all know that in the foreign exchange investment industry is dealing with data, no data to support the strong, is equivalent to writing no argument, no tools to do, cashback forex be no success. Therefore, before making an investment, the following four major data we must master Interest forexrebatecommission Interest rates are an important factor affecting the exchange rate, but due to the impact of expected data, may be digested in advance When the economy is overheated, inflation rises, it will raise interest rates rebatesforexbroker tighten credit; and when the overheated economy and inflation is under control, it will be appropriate to lower interest rates Real interest rates = nominal interest rates - inflation rate  The relationship between interest rates and money is often: interest rates rise, money is strong; interest rates fall, money is weak Gross Domestic Product (GDP) (initial, revised, final) GDP is the total value of all final goods and services produced in a country or regions economy over a certain period of time (indicates how well a countrys overall economy is doing, and is known by Western economists as the most comprehensive indicator of economic dynamics)  GDP = consumption (C) + private investment (I) + government spending (G) + net exports (X) If a countrys GDP grows significantly, it means that the economy is booming, national income is increasing, and spending power is growing.  Conversely, if a countrys GDP growth is negative, indicating that the countrys economy is in recession and its spending power is reduced, the countrys central bank will likely cut interest rates to stimulate the economy to grow again, and the attractiveness of the countrys currency will be reduced as a result of lower interest rates and poor economic performance. The unemployment rate has long been seen as an indicator of the overall economic situation, and in the U.S. it is one of the first economic data released each month, so foreign exchange traders and other financial market analysts tend to use the unemployment rate indicator to forecast industrial production, personal income and even new housing construction, among other related indicators. In the absence of hyperinflation, a decrease in the unemployment rate indicates a healthy economy, which is conducive to currency appreciation; if the opposite is true, a rise in the unemployment rate indicates a slow economy, which does not create enough jobs and is not conducive to currency appreciation. The PPI is a measure of the price of goods from manufacturers and farmers to the commercial sector*. It reflects the price changes in the means of production and is used to measure the changes in the cost of various goods at different stages of production. PPI is a prior index of inflation, when the prices of production raw materials and semi-manufactured goods rise, after a few months, it will be reflected in the prices of consumer products, which in turn will cause the overall price level to rise, leading to increased inflation; on the contrary, when the index falls, i.e., the prices of production materials have a tendency to fall in the production process, it will also affect the overall price level to fall, weakening inflationary pressure In addition, since agricultural products are subject to In addition, because agricultural products change seasonally and energy prices also change cyclically, they have a great impact on this price index, so when using this index, food and energy prices must be collated or excluded before analysis. If the PPI is higher than expected, there is a possibility of inflation and the central bank may implement a tightening monetary policy, which will have a favorable impact on the countrys currency. Economic data have a direct impact on the trend of a countrys currency, investors need to understand the trend of a countrys currency before investing in how to fully understand the countrys four major data situation  If you really want to get into this business, the following eight laws may give you some help Law one, market behavior is unpredictable, absolutely can not trust any prediction of the future of the unproven Law two, as soon as possible Law 3: When the ship begins to sink, do not pray, get out quickly Law 4: Chaos is not dangerous, believe in the law is dangerous Law 5: Do not let the money trapped in a certain investment tool at any time to maintain mobility Law 6: As long as the intuition or hunch can be reasonably explained, it can be used as the basis for speculative activities Law 7: Superstition that the rise and fall of the financial markets are governed by supernatural forces, which is impossible Law 8: Expect the best situation to occur is to be able to predict the future Eight, expect the best situation will happen is optimism, and confidence is to know how to deal with the worst situation, so never take speculative activities because of optimism
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