The important of major macro-economic indicators for international company manager in their management.
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Macroeconomic indicators are statistics that indicate the
current status of the economy of a state depending on a particular area of the
economy (industry, labor market, trade, etc.). They are published regularly at
a certain time by governmental agencies and the private sector. The degree of volatility is determined depending on the
importance of an indicator. That is why it is important to understand which
indicator is important and what it represents.
Interest Rates Announcement
Interest rates play the most important role
in moving the prices of currencies in the foreign exchange market. As the
institutions that set interest rates, central banks are therefore the most
influential actors. Interest rates dictate flows of investment. Gross Domestic Product: The GDP is the broadest measure of a country's economy, and
it represents the total market value of all goods and services produced in a country
during a given year.
Consumer Price Index
The
Consumer Price Index (CPI) is probably the most crucial indicator of inflation.
It represents changes in the level of retail prices for the basic consumer
basket. If the economy develops in normal conditions, the increase in CPI can
lead to an increase in basic interest rates. This, in turn, leads to an
increase in the attractiveness of a currency.
Employment Indicators
Employment indicators reflect the overall
health of an economy or business cycle.
Retail Sales
The
retail sales indicator is released on a monthly basis and is important to the
foreign exchange trader because it shows the overall strength of consumer
spending and the success of retail stores.
Balance of Payments
The Balance of
Payments represents the ratio between the amount of payments received from
abroad and the amount of payments going abroad.
Government Fiscal and Monetary policy
Stabilization of the economy is one of the
goals that governments attempt to achieve through manipulation of fiscal and
monetary policies.
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