hi there traders in this short video we will have a look at one of the most important economic indicator which is GDP GDP as most of you know stands for gross domestic product GDP is one of the most widely watched and monitored economic indicators for investors traders and for politicians GDP is considered a reflection of the health of an economic it is a measure of all the goods and services produced in an economy within a 12-month period and also it is a good measure of the overall size of an economy and it is an effective
way of comparing different economies around the world most countries really their annual GDP estimates but not all countries release their current GDP figures on a regular basis in some economies such as Canada or the United Kingdom GDP is released on a monthly basis thus making less impact in the markets the most common report is a quarterly release economies such as the United States eurozone Japan Australia and New Zealand really is their GDP on a quarterly basis one interesting phenomenon is the United Kingdom where the GDP report is now being released on quarterly and newly monthly
basis as well if we look at the case of the United States there are three versions of GDP being released a month apart advanced prelim and final the advanced release is the first one and so it tends to have the biggest impact in the market a common understanding is the GDP growth within an economy is sustainable over the long term at around three percent per year any growth which is higher can add inflationary pressures an interesting sight to check the current GDP rank and the time period figures is trading economics where you can compare a
list of countries and their current economic situation on this side you can just click the GDP rank and the countries will be sorted from the highest GDP rank to the lowest and you can also do the same with the ear over here or quarter-over-quarter figures this nice comparison can tell you how each economy is doing and how attractive it is for the investors let's switch back to the Forex factory and on the last note please bear in mind that any significant deviation in current trading compared to the expected figures and also compared to the previous
sprint including the correction can have a significant market moving potential there is an increased volatility and low liquidity in the markets on the target currencies during this schedule 2 releases it is therefore highly advisable to be very cautious while trading and to have a proper plan and a maximum control of your positions that's about it for now thanks for your attention and remember to trade safe Cheers [Music]
