Macroeconomic Indicators

Sustainable growth of national currency rate usually takes place under stable economic development. Investors’ involvement happens thanks to the increase of interest rates on deposits, which in its turn favorably influences the development of economical branches in the country.  The economical situation in the country is reflected in macro-economical indicators.

Macro-economical indicators are main economic indicators which help to define the phase of an economical development cycle (growth/recession). Significant changes in indicators lead to rapid exchange rates changes. That is why all economists and analysts closely follow the macro-economical data releases (publications).

Economic situation data is published by national statistics agencies. The time of the official release of indicators is predetermined. Leading financial analysts make their predictions based on the changes of the indicators they expect to see. Financial markets start moving towards the expectations and predictions of analysts. The main interest is drawn not by the absolute value of factual indicators and their change comparing to the previous reporting period but by the divergence of the changes from the analysts' expectations and predictions.

The anticipation for these indicators release puts financial markets into tension - speculators all over the world are getting ready to open deals to get speculative gains from exchange rates fluctuations.

The table below shows the list of main indicators that influence exchange rates the most. When some indicators grow – national currency exchange rate grows, respectively, when they decrease – it decreases too. When other indicators grow – the exchange rate decreases, respectively, when they decrease – it grows.

If the indicators' change leads to the growth of the national currency exchange rate, then you need to buy this currency, to the decrease – to sell!

The influence of the main macro-economical indicators onto the national currency exchange rate