Forex Education

Trade Deficit - When the merchants export value is smaller than import value, the outflow of currency results.

Balance of Payment - A statement in which all the revenues and expenditures of country are recorded.

Gross Domestic Product (GDP) - This represents the total value of the country's production during the period and consists of the purchases of domestically-produced goods and services by individuals, businesses, foreigners and government entities. (Full)

Unemployment Rate - A rate showing the percentage of the unemployed workers within the employable population.

Non-Farm Payroll - This figure reflects the health of the commercial and industrial sector of an economy. The size of this figure is positively related to the growth rate of an economy.

Industrial Production - Shows the industrial output of an economy.

Factory Orders - The amount of orders received by manufacturers.

Business Inventory - Unsold output. When this figure is high, an economy is slow and the currency of this country would be weakened.

Capital Utilization - This figure is high when an economy is strong. A high figure is beneficial to the currency of a country.

Leading Indicator - It can be used to predict the health of an economy. A high figure reflects high inflationary pressure. The following indices are related to inflation.

Consumer Price Index - Reflects the trend of the average price of consumer goods. This figure is positively related to inflation.

Producer Price Index - Reflects the trend of producer costs. This figure is positively related to inflation.

Retail Sales - Reflects the purchasing power of an economy.

Personal Income - Shows the growth in average income.

Personal Consumption Expenditure (PCE) - Shows the growth in average expenditure.

Prime Rate - The interest rate (lower than market interest rate) charged to highly reputable customers.

Discount Rate - Interest charged by central banks to commercial banks when borrowing money. Higher rates attract short-term inflow of investments.

Federal Fund Rate - The inter-bank rate for borrowing or lending reserve to meet margin requirement.