Other Factors That Move FX Rates - Pt 1

Other factors affecting FX rates movements are US economic data such as the non-farm payroll report and employment report. These reports are released on the first Friday of each month and details the number of jobs created outside the farming area as well as the level of unemployment in the US economy. More jobs created plus lower unemployment points to a stronger US economy. This will inturn lead to a strengthening of the US dollar. The US Gross Domestic Production (GDP) report is another important benchmark. It gives an indication of the strength of the US economy by reporting on the amount of goods and service produced in the US every quarter. Growth in the GDP indicates a strong economy and hence a stronger US dollar.

Continued in Part II ..