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Trends & Analysis
News

US dollar surges after Fed cuts rate by 50 bps

News

Will small caps shine after the Fed cuts rates?

News

Gold price hinges on the Fed meeting decision

News

Crude oil surges ahead of US Fed announcement

News

EUR/USD surges following economic data

News

Could we see a huge USD move this week?

Trends & Analysis
News

US dollar surges after Fed cuts rate by 50 bps

News

Will small caps shine after the Fed cuts rates?

News

Gold price hinges on the Fed meeting decision

News

Crude oil surges ahead of US Fed announcement

News

EUR/USD surges following economic data

News

Could we see a huge USD move this week?

Gross Domestic Product definition

Gross Domestic Product, abbreviated to GDP, is a measure of the monetary value of all the goods and services produced within a country’s borders in a period. This means the production levels of foreign nationals residing in a country will be taken into account when calculating its GDP. As an economic indicator, the GDP figure signals a country’s economic health and its production levels within its borders.

 

Using GDP in trading

GDP is an important indicator that fundamental analysts use when gauging the overall health of a country’s economy, and it has the potential to affect the performance of financial markets including the stock, forex, and commodities markets.

For example, if a country’s GDP growth rate is higher than expected, this could mean that the country is experiencing economic growth. This can lead to an increased interest and investor confidence in the country’s currency, pushing up its demand and thus its driving up its exchange rate in the forex market.

Conversely, if a country’s GDP growth rate is lower than expected, this could mean the country is experiencing an economic downturn. This can lead to a decreased interest and investor confidence in the country’s currency, decreasing its demand and thus its lowering its exchange rate in the forex market.

The GDP growth rate may also be used by investors to analyse the performance of individual companies or sectors within the economy. For example, when the GDP growth rate is low, it may mean there is an economic downturn occurring. Consumers tend to cut back on non-essential spending, which can cause the retail and entertainment industries to suffer.

 

Start trading with ADSS

ADSS offers a range of global markets for traders, with CFD opportunities in indices, commodities, forex, equities and more. We also feature tutorials, how-to guides, and weekly webinars to help you navigate the financial markets and find better trading opportunities. You can start trading and investing online by opening a live trading or demo trading account.

 

See all glossary trading terms


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ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

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ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.