Government Statistics and Forex Marketsby InvestorGuide Staff
The reason that most currency markets rely so heavily upon government statistics (such as Gross Domestic Product (GDP) rate, unemployment figures, trade balance reports, inflation, and interest rate announcements) is because they are both accurate and reliable indicators of economic strength or weakness. The statistics are compiled and analyzed using very complex formulas that are nearly impossible to manipulate. These government figures are both transparent and generally available to everyone at the same time - so there is a general sense that the currency market is an even playing field for both large and small investors. These statistics are generally released around the same time every month (with the exception of figures that are released quarterly, like the GDP) and distributed by all the major players, such as Reuters, Bloomberg, CNBC, etc.