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Market News: Trump welcomed Netanyahu and expressed optimism about reaching an Israel-Hamas agreement "this week."On July 7, the 27th Senate election of the Japanese Diet was scheduled for voting on the 20th. The latest opinion poll conducted by Kyodo News from the 5th to the 6th showed that the opposition camp was more popular than the ruling coalition, and nearly half of the respondents hoped that the ruling coalition composed of the Liberal Democratic Party and the Komeito Party would not achieve the goal of more than half of the seats. The Japanese Senate is responsible for legislative review and government supervision. It has 248 seats. The term of office of members is six years, and half of them are re-elected every three years. This election will focus on 125 seats. In addition to 74 constituency seats and 50 proportional representation seats, there is also 1 by-election seat. According to Japanese media, the results of this Senate election will determine the fate of Shigeru Ishibas cabinet. If the ruling coalition wins less than 50 seats, Japanese Prime Minister Shigeru Ishiba may resign or reorganize the ruling coalition.On July 7, Goldman Sachs said it expects the eight OPEC+ members to increase their oil production quotas by 550,000 barrels per day in September, thereby completely canceling the voluntary production cuts of 2.2 million barrels per day. OPEC+ hopes to restore idle production capacity to normal as global oil demand shows resilience. Goldman Sachs said: "The decision to accelerate the pace of production increases announced on Saturday strengthens our confidence. We have pointed out since last summer that OPEC+ will shift to a more long-term balanced strategy, focusing on normalizing idle production capacity and market share, supporting internal cohesion, and strategically restricting US shale oil supply." Goldman Sachs expects that the crude oil production of the eight OPEC+ members will increase by 1.67 million barrels per day from March to September to 33.2 million barrels per day, of which Saudi Arabia accounts for more than 60% of the increase.Jianpeng Holdings (01722.HK) rose more than 105%.Both U.S. and Brent crude oil prices fell by more than 1% during the day, and are now trading at $64.93 per barrel and $67.2 per barrel respectively.

Trading GDP Like A Currency Trader

LEO

Oct 25, 2021 13:27

Economic data reports are essential for a foreign exchange (forex) trader. These important economic indicators create volatility, and plenty of speculation is always surrounding them, and The United States' gross domestic product (GDP) is one such report. Not only do forex (FX) traders continue to monitor this important piece of economic data, they use it to either establish a new position or support a current one.

Gross domestic product is simply the total market value of all goods and services produced in a particular country. Gross domestic product figures can be released on a monthly or quarterly basis. For the United States, releases final quarterly domestic figures – along with additional advanced or preliminary figures toward the end of each month. This report can also be released in either real or nominal conditions.

Trading the Foreign Exchange Markets
Like any other piece of important economic data, the gross domestic product report holds a lot of weight for currency traders. It serves as evidence of growth in a productive economy while signaling contraction in a withering one.

What Investors Can Expect
There are three basic reactions to price action that a trader or investor can reasonably expect:

1. A lower-than-expected GDP reading will likely result in a selloff of the domestic currency relative to other currencies. In the case of the U.S., a lower GDP figure would signal an economic contraction and hurt the chances of a rise in U.S. interest rates – lowering the value or attractiveness of U.S. dollar-based assets. Additionally, the further below an actual GDP reading is from the estimate, the sharper the decline in the dollar.

2. An expected reading requires a bit more comparison by the FX investor. Here, the analyst or trader will want to compare the current reading to the previous quarter's reading – maybe even the previous year's reading. This way, a better evaluation of the situation can be gathered. Given this factor, you can expect that the resulting price action will tend to be mixed as the market sorts out the details.

3. A higher-than-expected reading will tend to strengthen the underlying currency versus other currencies. Therefore, a higher U.S. GDP figure will benefit the greenback, lending to some appreciation in the U.S. dollar against counter currencies; the higher an actual GDP reading is, the sharper the incline of the dollar's appreciation.



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