Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com

What is NFP and Why is Important?

The Non-Farm Payroll (NFP) report is a monthly economic release that provides insight into the employment situation in the United States. It is a highly significant economic indicator and is widely used by investors, traders, and policymakers to evaluate the health of the U.S. economy.

Impact of Nonfarm Payroll on the Foreign Exchange Market

The NFP report can significantly impact the foreign exchange (Forex) market. If the report shows more jobs added than expected, it can indicate a strong economy, leading to an increase in the value of the U.S. dollar. Conversely, if the report indicates fewer jobs added than expected, it can signal a weak economy and lead to a decrease in the value of the U.S. dollar.

Non-Farm Payroll Report Employment Change

The NFP employment change measures the number of jobs added or lost in the U.S. economy, excluding the farming industry. It is issued on the first Friday of each month by the U.S. Bureau of Labor Statistics and is based on data collected in the previous month.

How to read the Non-Farm Payroll Report  

While the NFP report can be complex, it offers valuable insights to investors and traders. It includes critical data such as the unemployment rate, the number of jobs added or lost, and the average hourly earnings. Investors and traders analyze this information to assess the economy’s health and make investment decisions.

Where to find the Non-Farm Payroll Report

The NFP report, released on the first Friday of every month at 8:30 a.m. Eastern Time (ET), can cause significant volatility in financial markets.

It is available on the website of the U.S. Bureau of Labor Statistics, as well as various financial news outlets and online platforms. Monitoring the NFP, along with other economic indicators, allows investors, traders, and policymakers to gain insights into the health of the U.S. economy and make informed decisions. Thus, comprehending the Non-Farm Payroll report is crucial for making better investment decisions.

What is Gross Domestic Product (GDP)

Gross Domestic Product (GDP) is a measure of the economic activity of a country. It is the total monetary value of all the goods and services produced within a country’s borders in a specific period, usually a year. GDP is often used as an indicator of a country’s economic health and overall standard of living. 

Understanding Gross Domestic Product (GDP) 

GDP is an important measure of a country’s economic activity. It provides a snapshot of a country’s economy at a specific point in time. It is important to understand that GDP is not a measure of a country’s wealth or standard of living, but rather a measure of its economic activity. It is calculated by adding up the total value of all goods and services produced within a country’s borders, including exports and imports. 

Types of Gross Domestic Product 

Nominal GDP 

Nominal GDP is the total value of all goods and services produced within a country’s borders at current market prices. Nominal GDP does not consider the effects of inflation or deflation on the economy. 

Real GDP 

Real GDP is the total value of all goods and services produced within a country’s borders adjusted for inflation or deflation. Real GDP is often used as a measure of a country’s economic growth, as it considers changes in the price level. 

GDP Per Capita 

GDP per capita is the total GDP of a country divided by its population. This measure is often used to compare the economic activity of different countries. 

GDP Growth Rate 

GDP growth rate is the percentage change in a country’s GDP from one period to another. It is often used to measure the health and growth of a country’s economy. 

GDP Purchasing Power Parity (PPP) 

GDP purchasing power parity (PPP) considers the differences in the cost of living between countries. It adjusts for differences in the prices of goods and services between countries to provide a more accurate measure of economic activity. 

GDP Formula 

The formula for calculating GDP is: 

GDP = C + I + G + (X-M) 

Where: 

C = Personal consumption expenditures 

I = Gross private domestic investment 

G = Government consumption expenditures and gross investment 

X = Exports of goods and services 

M = Imports of goods and services 

How to Use GDP Data and where to find them

GDP data is useful for analyzing a country’s economic activity and identifying trends in specific industries or sectors. It can be used to compare the economic activity of different countries and to determine if an economy is growing or contracting.

Policymakers, investors, and economists often use GDP data to make informed decisions and to gain insights into the health of the economy.

Gross Domestic Product data can be found in the National Accounts dataset portal, and in the Data Tables tab of the International Financial Statistics dataset portal.

Is a High GDP Good? 

A high Gross Domestic Product (GDP) generally indicates a strong and growing economy. It means that the country is producing more goods and services, creating more job opportunities, and generating higher incomes. A high GDP can also attract foreign investments, which can further boost economic growth. Additionally, a high GDP can provide the government with more resources to invest in public goods and services, such as infrastructure, education, and healthcare.

However, a high GDP alone does not necessarily equate to a better quality of life for all citizens, as income inequality and other social issues can persist. Therefore, while a high GDP can bring many benefits, it should not be the only measure of a country’s overall well-being.

What is the U.S Federal Interest Rates 

The Federal Reserve (Fed) sets the interest rates that banks charge each other for short-term loans, known as the federal funds rate. The federal funds rate is the benchmark for other interest rates, such as mortgage rates, credit card rates, and car loan rates. The Fed has two primary tools for controlling interest rates: open market operations and the discount rate. Open market operations involve buying and selling Treasury securities in the open market to influence the supply of money in the economy. The discount rate is the rate at which banks can borrow money directly from the Federal Reserve. 

5 ways Federal Interest Rates affect your money 

Interest rates have a significant impact on the economy, and changes in interest rates can affect consumers in many ways: 

Mortgages: When the Federal Reserve raises interest rates, mortgage rates tend to increase, which can make it more difficult for people to buy homes. 

Credit Cards: Credit card companies typically charge variable interest rates, which are often tied to the prime rate. When the Federal Reserve raises interest rates, the prime rate increases, and credit card rates follow. 

Car Loans: When interest rates rise, car loan rates tend to follow. This can make it more expensive to finance a car. 

Savings Accounts: When interest rates rise, savings account rates tend to increase as well. This can be good news for savers, as they can earn more interest on their savings. 

Inflation: The Federal Reserve raises interest rates to combat inflation. When inflation is high, interest rates tend to be high as well. High interest rates can help keep inflation under control, but they can also make it more expensive for consumers to borrow money. 

Why is the Federal Interest Rates important 

The Federal Reserve sets interest rates to achieve its dual mandate of price stability and maximum employment. The Fed raises interest rates to slow down inflation and lower interest rates to stimulate the economy. The Federal Reserve also uses interest rates to manage the money supply in the economy. By increasing or decreasing the money supply, the Fed can affect the overall level of economic activity. 

Interest rates also play a critical role in financial markets. Changes in interest rates can affect the prices of stocks, bonds, and other financial assets. For example, when interest rates rise, the prices of bonds tend to fall, and when interest rates fall, the prices of bonds tend to rise. 

What makes the Federal Reserve (Fed) change Interest Rates 

The Federal Reserve changes interest rates based on its assessment of the economy’s performance. The Fed’s policymaking body, the Federal Open Market Committee (FOMC), meets regularly to assess economic conditions and determine whether to raise, lower or maintain interest rates. The FOMC considers a range of economic indicators, including inflation, unemployment, and economic growth, when making its decisions. 

In general, the Federal Reserve raises interest rates when it wants to slow down inflation, and it lowers interest rates when it wants to stimulate economic growth. The Fed may also change interest rates in response to external factors such as changes in the global economy or financial market instability. 

Where can you find the Federal Interest Rates 

The Federal Reserve releases information about interest rates through its website and other public channels. The Federal Reserve publishes the minutes of the FOMC meetings, which provide insight into the committee’s thinking and decisions.

What is the U.S Federal Funds Rate 

The U.S Federal Funds Rate refers to the interest rate at which depository institutions lend and borrow money from each other overnight to maintain their reserve requirements set by the Federal Reserve. The Federal Reserve sets a target for the Federal Funds Rate, and then uses open market operations to adjust the supply of money to keep the rate within the target range. 

How does the U.S Federal Funds Rate work 

The Federal Funds Rate is the rate at which banks lend to one another to meet their reserve requirements.

Banks are required to keep a certain amount of cash on hand, which is known as a reserve requirement.

The Federal Reserve uses the Federal Funds Rate as a tool to influence the supply of money and credit in the economy. When the Federal Reserve increases the Federal Funds Rate, it becomes more expensive for banks to borrow money, and therefore they are less likely to lend to consumers and businesses. This results in a decrease in the money supply and a contractionary effect on the economy.

Conversely, when the Federal Reserve decreases the Federal Funds Rate, it becomes cheaper for banks to borrow money, and they are more likely to lend to consumers and businesses. This results in an increase in the money supply and an expansionary effect on the economy. 

Why is the U.S Federal Funds Rate important 

The U.S. Federal Funds Rate is a valuable tool used by the Federal Reserve to manage the economy. Changes in the Federal Funds Rate can significantly impact borrowing costs for consumers and businesses, which can affect spending and investment decisions.

For example, if the Federal Reserve raises the Federal Funds Rate, mortgage rates and other loan rates will increase, making it more expensive for consumers to borrow money to buy a house or a car. This can lead to a slowdown in the housing market and a decrease in consumer spending.

On the other hand, if the Federal Reserve lowers the Federal Funds Rate, mortgage rates and other loan rates will decrease, making it easier for consumers to borrow money and increasing consumer spending. 

What are the differences between the Federal Funds Rate and Regular Interest Rates 

The Federal Funds Rate is the interest rate that banks charge each other for overnight loans to meet reserve requirements. Regular interest rates, on the other hand, refer to the interest rates that banks charge consumers and businesses for borrowing money.

The Federal Funds Rate is set by the Federal Reserve and is used as a tool to influence the money supply and credit in the economy, while regular interest rates are set by banks based on their cost of funds and risk factors. The Federal Funds Rate is typically lower than regular interest rates, as it is a short-term rate and banks are lending to each other, while regular interest rates are based on the longer-term risk and cost of lending to consumers and businesses. 

Where can you find the Federal Funds Rate  

The Federal Reserve announces the Federal Funds Rate eight times a year after the Federal Open Market Committee (FOMC) meetings. The FOMC is responsible for setting the target range for the Federal Funds Rate, and the announcement is made at the end of each meeting.

The Federal Reserve also publishes the minutes of the FOMC meetings, which provide details on the discussions and decisions made by the committee.

The Federal Funds Rate can also be found on various financial news websites and is closely monitored by economists, investors, and financial market participants. 

What is the U.S Consumer Price Index (CPI)  

The U.S Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. The CPI is widely regarded as one of the most important economic indicators in the United States as it measures the rate of inflation, which is a key factor in determining the state of the economy. The CPI is compiled monthly by the Bureau of Labor Statistics (BLS) and is used by policymakers, economists, and investors to track changes in the cost of living and make informed decisions. 

What are the various categories of Consumer Price Index (CPI)  

The Consumer Price Index is comprised of various categories, each with its own weight in the overall index. The major categories of the CPI include food and beverages, housing, apparel, transportation, medical care, recreation, education and communication, and other goods and services. The weights assigned to each category reflect the relative importance of each category in the spending habits of consumers. For example, housing typically has the highest weight in the index, reflecting the fact that it is the largest expense for most households. 

Why is the CPI important  

The CPI is important because it is used to monitor inflation, which is a key economic indicator. Inflation can erode the value of money and impact the purchasing power of consumers. As such, policymakers use the CPI to make informed decisions about monetary policy, including setting interest rates. Investors also use the CPI to monitor inflation and adjust their investment strategies accordingly. Additionally, the CPI is used to adjust payments for various government programs, such as social security and other entitlements. 

What goes into the Consumer Price Index  

The CPI tracks the prices of a wide range of goods and services, including food, housing, clothing, transportation, medical care, recreation, education, and communication. The index includes more than 200 categories of goods and services, which are further divided into subcategories.  

For example, the food category includes subcategories such as meat, dairy, fruits and vegetables, and nonalcoholic beverages. The housing category includes subcategories such as rent, homeownership costs, utilities, and household furnishings.  

The transportation category includes subcategories such as gasoline, public transportation, and vehicle insurance. The CPI also considers the frequency of purchase and the relative importance of each item to the average household. The Bureau of Labor Statistics, which is responsible for compiling the CPI, surveys thousands of households to determine their spending patterns and then uses this information to weight the various goods and services in the index. The resulting CPI is a valuable tool for policymakers, businesses, and consumers in understanding inflation and making informed decisions about the economy. 

Where can you find the Consumer Price Index  

The Consumer Price Index is released by the Bureau of Labor Statistics monthly. The release schedule for the CPI is typically announced several months in advance and is available on the BLS website. The CPI is also widely reported in the media and can be found on numerous financial news websites. Additionally, investors and economists often track the CPI using specialized software and data services, which provide more detailed analysis of the index and its components. 

What is the Consumer Confidence Index 

The Consumer Confidence Index (CCI) is a survey-based economic indicator that measures the level of optimism that consumers have in the economy. The CCI is released monthly and is closely watched by economists, investors, and policymakers as an important gauge of the health of the U.S. economy. 

Understanding how the Consumer Confidence Index works 

The CCI is compiled by the Conference Board, a non-profit research organization. The CCI is created through a survey of a random sample of 5,000 households across the U.S. Respondents are asked questions about their perceptions of current business and labor market conditions, as well as their expectations for the future.

5 ways the Consumer Confidence Index affects you 

The CCI has significant implications for consumers, businesses, and policymakers.

Here are five ways that the CCI can affect you: 

Consumer Spending: When consumers are confident in the economy, they are more likely to spend money on goods and services, which can help drive economic growth. 

Business Investment: If businesses perceive that consumers are confident in the economy, they may be more likely to invest in their operations, which can help create jobs and drive economic growth. 

Interest Rates: The CCI can also influence the actions of the Federal Reserve. If the CCI shows that consumers are optimistic about the economy, the Fed may be more likely to raise interest rates to prevent inflation. 

Stock Market: The CCI can also impact the stock market, as investors may buy or sell stocks based on their perceptions of the economy as indicated by the CCI. 

Job Market: The CCI is closely watched by policymakers as an important indicator of the health of the labor market. When the CCI is high, it can signal that consumers are more likely to be optimistic about job prospects, which can help drive employment growth. 

Why Is the Consumer Confidence Index Important 

The significance of the Consumer Confidence Index lies in its ability to reflect consumer sentiments regarding the current state and future trajectory of the economy. Administered by the Conference Board, the index comprises five questions concerning the current economic situation and three questions pertaining to future expectations. It offers valuable information on consumer spending and saving patterns, which can aid businesses and economic leaders in monitoring inflation and output levels. 

Where can you find the Consumer Confidence Index 

The Conference Board releases the CCI on the last Tuesday of every month at 10:00 a.m. ET.

The CCI is on the Conference Board’s website, financial news websites and platforms. Additionally, many financial institutions provide their own analysis and interpretation of the CCI, which can clarify the implications of the index for the broader economy. 

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Highly anticipated economic reports are set to be released this week, including the Bank of England Rate Statement, US Consumer Price Index (CPI), and US Producer Price Index (PPI). These reports are vital, providing traders and investors with essential data and ensuring they stay ahead of the dynamic market.

Consumer Price Index | US (10 May)

CPI in the US rose by 0.1% in March 2023, showcasing a slowdown in increment from February’s 0.4% increase.

According to analysts, the CPI reading for April—which will be released on 10 May—is expected to rise by 0.3%.

Takeaway: Following the negative market reaction to the Fed rate decision, the market will now be closely watching the Consumer Price Index. If the results align with the forecast, we can anticipate a slight boost to the US dollar.

Bank of England Rate Statement | UK (11 May)

During its March 2023 meeting, the Bank of England raised its key bank rate by 25bps to 4.25%, with the objective of bringing inflation back to the 2% target. 

Some analysts expect the next rate hike will be by another 25bps to 4.50%.

Takeaway: Based on last month’s hawkish inflation and wage data, the Bank of England is expected to implement another 25 basis-point rate hike. However, due to recent comments by the bank on the delayed impact of prior tightening measures, the criteria for further actions have increased. Unless there is negative economic news in the next few weeks, we predict that there will be no further adjustment in June.

Producer Price Index | US (11 May)

Producer prices for final demand in the US decreased by 0.5% month-on-month in March 2023, the largest drop since April 2020. 

The PPI data for April will be released on 11 May, with analysts expecting an increase of 0.3% from the previous month. 

Takeaway: Following the negative reaction of the market to the Fed rate decision, the focus now shifts to the Producer Price Index. If the result aligns with the forecast, we can anticipate a slight boost for the US dollar.

Gross Domestic Product | UK (12 May)

The UK economy experienced a halt in February 2023, after achieving upward growth of 0.4% in January. 

The GDP figures for March, due to be released, is expected to show an increase of 0.1%.

Takeaway: The Bank of England will rely on the latest UK GDP figures to help determine their next interest rate decision. The release of this data, if it’s in line with expectations, could potentially slow down the GBPUSD exchange rate. However, it could also signal the central bank to keep the interest rate unchanged in the next meeting.

Prelim University of Michigan Consumer Sentiment | US (12 May)

The University of Michigan’s US consumer sentiment came in at 63.5 in April 2023, up from 62 in March.

For May, analysts expect a reading of 64. 

Takeaway: The market closely watches consumer sentiment as it serves as an indicator of the public mood in the US. If the data release meets the forecast, we may see a boost for the US dollar.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com

Sydney, Australia, 3rd May 2023 – VT Markets, a leading online trading platform, has announced the launch of its highly anticipated King of the Hill Trading Contest. The contest will run from 1 May to 31 July 2023, granting the world’s best traders an exclusive chance at global recognition.

First launched early this year to a hugely positive reception, the popular competition is now set to build on its inaugural success. In addition to new participating regions, this latest edition will feature an expanded prize pool of over US$60,000, to be split between participating traders based on their realised profit.

Beyond cash prizes, top performers will also be featured on VT Markets’ Wall of Fame, allowing them to grow their influence and establish themselves among the world’s elite traders.

Commenting on the numerous incentives on offer, a VT Markets representative stated: “We are delighted to bring traders these exciting opportunities for higher earning potential and greater rewards. By leveraging our innovative copy trading platform, VTrade, traders can now showcase their trading expertise and access unparalleled chances for success.”

About the company:

VT Markets is a regulated multi-asset broker with a presence in over 160 countries. The broker has won many international accolades including Best Customer Service and Fastest Growing Broker. Its mission is to make trading an easy, accessible, and seamless experience for everyone.

For more information, please visit out website or email media@vtmarkets.com