Some microeconomic factors have a major impact on the price movement of the trading instruments. So, traders need to become aware of these. If they do not know about the news, they can’t take the right action. Most of the time, traders miss the time of important news releases. And so, they can’t make money. In the market, the situation can be changed at any time. For this, the news is mostly responsible. But, if you can know about the news by being a trader in time, you may get success.
So, in this article, we’ll discuss the important news which might aid the traders to take the right action. Let’s discover these together.
Interest rate
Bear in mind, if the interest rate increases, the value of the asset will be increased. On the other hand, if the interest rate decreases, the value of the asset might be decreased. Central bank decides whether they will increase the interest rate or not. Sometimes, to keep the balance, the central bank keeps the interest rate the same. At this time, the value of the asset remains the same. So, before investing money, traders should know about this fact. Or else, they might face issues.
Inflation rate
Traders need to know about the inflation rate to take wise decision. Sometimes, they do not focus on this issue. Keep in mind, if the inflation rate increases, the value of the asset decreases. On the other hand, if the inflation rate decreases, the value will be increased. Most of the time, if the financial conditions of the country are not good, the inflation rate increases. So, before investing money, you need to check if the financial condition of the country is good or not. Sometimes, traders do not check this and thus face the big issue.
Import vs. export
If the export rate is higher than the import rate, you need to understand, the economic condition of the country is good. However, you should know, if the import rate is high, then, the price of the trading instruments will be decreased. So, being a trader, you need to invest your money in a country which the export rate is high. So, you should analyze the fact properly. However, sometimes, traders do not pay heed to this fact and invest money in the wrong asset. Try to know about this news to take the right action. Always remember, ETF market is very sensitive in nature. And news events like import and export data can cause massive fluctuations in the price.
GDP
GDP rate plays an important role in the market. If the GDP rate is high, the value will be increased. On the other side, if the GDP rate is low, the value will be decreased. However, sometimes, due to political issues, the GDP rate can be increased. So, traders need to know about this. However, sometimes, traders do not consider this thing. But, it has a great impact on the price. But if they can contemplate this fact before taking any step, they might take the right action. However, some countries take some necessary steps to increase their GDP.
Unemployment rate
The value of the asset will be increased if the unemployment rate decreased. So, traders should check the unemployment rate. However, sometimes, because of floods, droughts, and other issues, the economic condition of courtiers goes down. For this reason, they face issues. However, if the nations can increase the employment rate, the price of the trading instrument will be increased. So, traders should take the information properly which might aid them to take the right action.
By reading the article, you may understand, what sort of factors can influence the traders’ trading process. So, they should know about these. However, they should keep the economic calendar which may help them to know about the important news at an appropriate time.