, inflation and are the three main economic indicators used in the basic analysis.
Of course, there are other indicators to consider, including the trade balance, retail sales and employment data.
There are also decisions, fiscal policy changes and political stability.
Interest rates: Interest rates are very important in fundamentals.
Interest rate manipulation is one of the main functions of central banks as part of national monetary or fiscal policies.
This is because interest rates are an important factor in the economy, stronger than any other factor in influencing the value of money and inflation, investment, trade activity, productivity and unemployment.
Inflation data: Inflation reports reflect fluctuations in commodity prices over a period of time.
Note that each economy has what it considers a healthy level of inflation, typically around 2 per cent in many countries.
As the economy grows, so does the amount of money in circulation, which is the definition of inflation.
In this regard, the government and the central bank intervened to balance inflation around the target level.
High inflation affects the balance between supply and demand, which is good for supply.
So, when supply exceeds demand,
Inflation has an opposite term, which is.
During deflation, the value of money increases, so goods and services become cheaper.
Gross Domestic Product figures: Gross Domestic product () is the sum of goods and services produced by an economy at a given time.
It is considered the best indicator of the overall health of the economy.
The rate of change in GDP over time can tell you a lot about the health of the economy, whether it’s growing or contracting.
Therefore, it is used as an indicator of a country’s monetary strength.
Contrary to a contraction in GDP, any increase in GDP is likely to have a positive impact on the value of money.
The strong dollar continued, with U.S. oil plunging nearly 8 percent and the energy crisis threatening to drag the euro below parity.
Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.
