April 16, 2021
  For every man with a broken compass, the world looks like an ocean of depression. As traders in the Forex market, people have no consensus on the price movements and patterns of currencies. They make the decision of investment based on their own judgment and their available capital. The process of judgment highly depends on the information stream. So once stuck in the less helpful indicators, investors are unlikely to mobilize their maximum potential.
The forex market is reshaped by global investors, increasing investment diversity and the enthusiasm in investing currencies. We have seen a contradiction between the actual movements of the Forex market and the economic data. These outlooks differ in degrees because the applicable data is more inclusive. Tankan and ZEW are the most used indicators in forecasting the further movement of the Japanese Yen and Eurodollar.
  Does an omnipotent indicator really exist? YES
  The ZEW Indicator of Economic Sentiment aggregates sentiments of
around 350 economists and analysts to get a sense of Germany's economic
outlook. These experts came from banks, insurance companies, and
financial departments of selected corporations. They were consulted
about their expectations for the overall economy, inflation rates,
interest rates, stock markets, exchange rates, and oil prices over the
next six months. Tankan survey covers thousands of Japanese companies
with a specified minimum amount of capital, but firms deemed
sufficiently influential may also be included. According to a document
from the Bank of Japan, the list does not include companies that have a
"weak link with economic conditions†such as education and health care.
  A wise trader will always identify the best of these two indicators
and the worst of the traditional ones. These two indicators focus on
economic data from all sources and professional insight into the
outcomes. Despite the criticism on the objectivity, these two indicators
are powerful when people need a reliable reference for economic
environment evaluation.
Posted by: wisepowder at
06:29 AM
| No Comments
| Add Comment
Post contains 451 words, total size 3 kb.
35 queries taking 0.0473 seconds, 63 records returned.
Powered by Minx 1.1.6c-pink.