Fundamental Analysis

4.9%
 
Forecast: 4.9%
 
Definition: The total market value of all goods and services produced within the political boundaries of an economy during a given period of time, usually one year. This is the government's official measure of how much output our economy produces. It's tabulated and reported by the National Income and Product Accounts maintained by the Bureau of Economic Analysis, which is part of the U. S. Department of Commerce. Gross domestic product is one of several measures reported regularly (every three months) by the pointy-headed folks at the Bureau of Economic Analysis.
 
General Effect: The GDP is considered a very important indicator that moves the currency markets hectically for the value of such a reading. The reading is merely a reflection of a certain economies period in a specified period therefore any improvement reflects the wellbeing of the economy in all its considered aspects. Consequently, a revitalized economy is reflected positively on the currency providing strength and demand on that currency.
The GDP reflects the markets cycle that is starting by the consumer with increased income and high confidence in the economy would likely rise the level of spending therefore production levels increase more employment resulting in the availability for more cash to spend empowering the cycle of production, which in result ends by empowering the currency.
The effect as mentioned is positive on the currency as direct as for the equity markets the effect is towards the upside as well for the unbreakable tie that links any economy to the equity market, if there is growth there is defiantly an increase in the equity as well for it is a reflection of the output of that economy. Therefore any increase in the GDP effects positively on the currency as well as on the equity market and the opposite of this is as well applicable.
The gross domestic product effect the currencies market highly, because its points the economic growth that can be achieved during a period of time and coming out from currently economic improvements in different sectors beside existing investments inside the country, so if this indicator shows increasing value, its mean in other words that there is obvious enhancements in investment ,sales sectors and in cash flows .Therefore the planned exploitation of available productivity potentials at current economic conditions leading to increase gross domestic product index.