There are numerous factors affecting Forex prices ..
1. Economy
Value of a Currency of any country highly depends on its economy . Growing economy is foundation of stable currency , in economy there are several indicators which you can use to predict economy and and Forex price movement. which include
-->GDP: it measures the growth and production of a country, higher rate then previous lead to bullish for that currency pair
-->PPP: Purchasing power parity measure the comparative power of a country to purchase the goods. higher ppi is taken as bullish, and lower as bearish.
-->Interest Rates: it is the back bone of economy as it influence nearly everything in a country, inflation and deflation can also be caused by interest rates.
-->Employment Rate: High employment rate means country is prospering and indicator of future growth. good employment rate leads to more investments.and hence lead to healthy economy
-->Consumer Spending: spending of public in a country indicates what there people are thinking about there economy , low spending means people are saving more then spending because they think economy is going downside.
You must Watch Economic Calendar to grip these factors and correctly predict the price movements.
1. Economy
Value of a Currency of any country highly depends on its economy . Growing economy is foundation of stable currency , in economy there are several indicators which you can use to predict economy and and Forex price movement. which include
-->GDP: it measures the growth and production of a country, higher rate then previous lead to bullish for that currency pair
-->PPP: Purchasing power parity measure the comparative power of a country to purchase the goods. higher ppi is taken as bullish, and lower as bearish.
-->Interest Rates: it is the back bone of economy as it influence nearly everything in a country, inflation and deflation can also be caused by interest rates.
-->Employment Rate: High employment rate means country is prospering and indicator of future growth. good employment rate leads to more investments.and hence lead to healthy economy
-->Consumer Spending: spending of public in a country indicates what there people are thinking about there economy , low spending means people are saving more then spending because they think economy is going downside.
You must Watch Economic Calendar to grip these factors and correctly predict the price movements.
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