Forex Market And The Employment Index

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Fundamental analysis or analysis of the market based on economic indicators, is a big part in the development of the foreign exchange market strategies. Most online forex trading platforms for information on economic indicators through an online forex magazines, which are often offered free of charge. One of the main economic indicators will be surrounded by the Economic Index (ECI), one of the main actors, the shapes and defines the foreign exchange market strategies.
What is the measure of employment index (ECI)?
Employment index basically measures the cost of doing business. It measures the monthly change in important variables in the employee’s salary, fringe benefits and bonuses for work. ECI is so important that it also helps to define the monetary policy decisions and policies of the Federal Reserve.
The street is the inflation
By comparing the changes in monthly inflation rate in the salary of the employee depends on whether or not to pay for the current price level. For example, if the current inflation rate is 3% per year, and the workers’ wages at 2% per year is growing, so even if the wages are still common, they actually declined compared to the actual cost of living. This could have a negative effect on the economy (ie, less consumption) and long-term impact on the exchange rate. On the other hand, if the salaries by 3% per annum and a healthy growth in social benefits and bonus (total compensation) is growing and inflation is 2% per year, then the total economic benefit because it is the currency of the country is.
It may be an indicator, but it is still important!
Although the ECI has been out (after the economic transformation), it is still an important factor in establishing a marketing strategy. ECI (either up or down) basically confirmed the economic environment and the investor can help to strengthen the overall business strategy. They say that economy is showing signs of weakness in recent months, but by and large are conflicting reports. ECI report comes out and strengthen the financial results of the economic downturn (ie, lower wages), which in turn can negatively affect the country’s currency exchange rate. This information can an investor invest the necessary strategic decisions, if you in the forex market.


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