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United States of America

Economy of the United States of America : facts & statistics

Currency : USD
Official nameUnited States of America
Nominal GDP$15,653,300 million (2012)
GDP per capita$49,802
Real GDP growth rate2.55% (2014)
Inflation rate2.39%(2014)
Unemployment rate5.8% (December 2014)

Top Binary Options Brokers in the U.S.

Understanding the Characteristics of U.S. Dollar

The U.S. dollar is the world’s largest reserve currency and it is used in international transactions for settlement by all the countries in the world. It is often used for foreign currency deposits and overseas travel. The U.S. dollar is the most heavily traded currency, thus it attracts the attention of market participants. The United States is seen as the world’s largest economic power and its official currency, the U.S. dollar, is influenced by a number of factors, such as, economic indicators, corporate performance, military news, policy interest rates, etc.

As one of the features, the value of the U.S. dollar tends to move in the opposite directions to the gold price. Historically, when the price of gold rose, the value of the U.S. dollar fell, and when the price of gold went down, the value of the U.S. dollar went up.

This is because that, when investors worry that a crisis or unstable factors may occur and the U.S. dollar may lose its value, they would like to use gold as an alternative. Since gold is a real asset, even if financial crisis or bankruptcy occurs in a country, the price of gold will not go down. Gold is thus considered by investors as a safer asset. When an economic recession occurs and investors face uncertain future of the economy, the price of gold goes up and the value of the U.S. dollar goes down. On the other hand, when the economy is prosperous, the gold price falls and the U.S. dollar rises.

Because of the large scale of U.S. economy, the U.S. dollar is also known as a currency that is less volatile. The movements of U.S. dollar are relatively stable, it is thus important that you follow the trends and do not go in opposite directions when you trade the U.S. dollar.

List of Economic Indicators You Should Pay Attention To When Trading U.S. Dollar

IndicatorRelease dates
ISM Manufacturing Indexthe first business day of each month
ADP National Employment Reporton Wednesdays, two business days prior to the release of the Employment Situation Report by the Bureau of Labor Statistics
ISM Non-manufacturing Indexthe third business day of each month
Unemployment Ratethe first Friday of each month
Non-farm Payrollsthe first Friday of each month
Retail Salesaround the 20th of each month
Consumer Price Indexaround the 15th of each month
Producer Price Indexaround the 15th of each month
FOMC Interest Rate Policyevery 6 weeks, 8 times a year
Gross Domestic Product (GDP)quarterly
Personal Consumption Expenditureat the end of each month
Existing Home Salesquarterly

Even though the confidence in the U.S. dollar is falling since the terrorist attacks occurred in the United States on September 11, 2001 and subprime mortgage crisis happened, the U.S. dollar is still seen as the world’s reserve currency and it draws the attention of investors from all over the world. The U.S. economic indicators also draw the attention of investors as they are the main factors that influence the value of the U.S. dollar.

As the world’s largest reserve currency, the U.S. dollar has a profound impact on other currencies. Therefore, there are a comparatively large number of economic indicators that an investor needs to pay attention to. If investors pay close attention to the U.S. economic indicators, they are able to predict the movements of the market. It is thus necessary to keep an eye on all economic indicators while trading binary options.

Among these economic indicators, an investor needs to pay special attention to the FOMC Interest Rate Policy and employment statistics. Large movements in the market are likely to occur after the release of economic indicators. Therefore, when you place trades after the release of FOMC Interest Rate Policy and employment statistics, it is important to look at these indicators.

Because the U.S. dollar is world’s reserve currency, compared with other currencies, it is relatively easier to collect information about the U.S. dollar. A lot of binary options brokers provide U.S news and investors can easily get the latest updates. Therefore, for novice traders, it may be easier to trade the U.S. dollar.

Binary Options in the U.S.

On this website, we will introduce a list of best binary options brokers for US residents. Since the payout rates and trading details of brokers are different from one another, it is better to choose the right broker for your purpose.

What You Should Pay Attention To When Trading U.S. Dollar

As the world’s reserve currency, the U.S. dollar is traded by a lot of investors and it is the most traded currency. When wars or crises occur, the U.S. dollar and U.S. financial instruments become popular as many investors consider them as safer assets.

However, by looking at the figure below, we can see that, even though the economy is recovering in recent years, the Iraq War and the effect of the collapse of Lehman Brothers on the world economy have a profound impact on the U.S. dollar, and it is said that the value of the U.S. dollar begin to decline.

Bank of International Settlements (BIS) effective exchange rate indices. The bold line represents the U.S. dollar.

As the official currency of Singapore, which is an economic power in Asia, you may know that the Singapore dollar (SGD) is rising. It is also necessary to be aware that investors are moving away from buying U.S. dollar. When crises or wars occur, the tendency to buy the U.S. dollar appears to be changing. It is thus important that you can take action according to the circumstances when a crisis occurs.

Even though we have discussed some downsides, it is quite certain that the U.S. dollar has great influence nowadays. Investors from all over the world are concerned about the U.S. economy and currencies paired with the U.S. dollar are thus greatly influenced by it.

Investors can get all the latest information on the U.S. dollar easily. If you keep up with the news and adopt a flexible approach, it is very likely that you can make a profit. Therefore, it is important to collect information when you trade the U.S. dollar.

Changes in policy interest rate of the United States

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2015

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