Economic indicators are key statistics used to assess the overall health and direction of an economy. These indicators influence market sentiment and can impact the prices of financial assets, including stocks, bonds, currencies, and commodities. Three of the most important economic indicators are Gross Domestic Product (GDP), employment data, and interest rates. Understanding these indicators helps traders and investors anticipate potential market movements.
1. Gross Domestic Product (GDP)
GDP measures the total value of goods and services produced by an economy over a specific period, usually quarterly or annually. It reflects the size and ...