Foreign Investment Indicators
The forex market is sensitive to changes in the economy and will react accordingly. As the economy is affected by investment performance, the expected returns may change due to the influence of inflation or deflation. Thus, it’s important to consider foreign economy trends while planning investment strategies.
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Foreign Investment Indicators
The Business Cycle has 4 stages: 1) recovery (also known as expansion); 2) peak; 3) contraction (also known as recession); and 4) trough. The growth of business activity, increase of demand and production, as well as expansion of employment should also be observed.
Gross National Product (GNP) is one of the key indicators of the economic activity. All the services provided and the goods produced within the US economy form the GNP. There are 4 components included in the GNP. They are: 1) consumer spending; 2) government spending; 3) investments; and 4) net exports.