Forex or the foreign exchange market is gaining a lot of attention and the population interested to trade in foreign exchange market is increasing day by day. Trading in foreign exchange market involves the buying and selling of currency pairs depending on the rise and fall of the value of currency pair in the future. These buying and selling actions involved in the foreign exchange market highly influence the future of trading in the market and therefore, certain tools called the Forex indicators help the traders to make a proper decision on the action of buying or selling of the currency pairs.

A Forex indicator typically represents the past values of currency pairs in order to predict the behaviour of currency pairs in future. One among the most important type of indicators in a foreign exchange market is the Economic indicator.

An economic indicator can be defined as the piece of economic data that helps the traders of the foreign exchange market to interpret the situations and possibilities of a foreign exchange market and also to determine the overall status of any economy. Some examples of the economic data given out by the non-profit organizations and also by the government that are used and followed in the foreign exchange market are: Gross Domestic Product (GDP), the price of crude oil, Consumer Price Index (CPI) and Unemployment figures.

The economic indicators are released every week into the foreign exchange market and are used by the traders who interpret the information that is contained in these indicators. The traders interpret and analyze the information given by these indicators in their own way by studying the economy. These economic indicators are very important for the traders in order to enhance their strategies in trading. Traders have to be completely aware of the schedules of the release of financial data. Especially for the countries, the currency of which the traders always gauge, the economic indicators should be constantly followed.

One easy way to stay aware of the releasing Forex economic indicators is to follow the economic calendar. An economic calendar serves as an efficient tool which helps in tracking the important economic indicators. These tracked indicators further gives information about the direction in which the market is heading and also influences the buying/selling actions of the traders in Forex. Having an appropriate amount of knowledge about the economic indicators is very beneficial as well as crucial in a trader’s career.

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