Varying Importance of Market Outlooks Affecting Exchange Rates

by InvestorGuide Staff
The current outlook of the market plays a key factor in how news releases will affect exchange rates. If the U.S. economy was in a recession and the market was expecting the economy to expand, the newest GDP figures would probably play a bigger role on exchange rates than unemployment figures (this is because it is common in many recoveries for GDP to expand before unemployment rates begin to drop).
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