Major economic events that has impact on currency pairs ๐
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Thread ๐งต:
1. Interest Rate Decisions: Central banks often use interest rates to control inflation and stimulate economic growth. When a central bank raises interest rates, it can attract foreign investors and strengthen the currency.
2. GDP Reports: Gross Domestic Product (GDP) measures the economic performance of a country. Strong GDP growth is generally positive for a currency, indicating a healthy economy. On the other hand, weak GDP growth or contraction can lead to currency depreciation.
3. Employment Data: Employment reports, such as non-farm payrolls in the US, provide insights into the labor market's health. Positive employment data, like increased job creation or lower unemployment rates, can boost a currency
4. Inflation Data: Inflation measures the rate at which prices of goods and services increase. Higher inflation can erode the purchasing power of a currency, leading to its depreciation. Therefore, currency pairs can be influenced by inflation reports
5. Political Events: Political events, such as elections or geopolitical tensions, can impact currency pairs. Political stability and favorable policies often attract investors, strengthening a currency. political uncertainty or conflicts can lead to currency volatility
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