Why does U.S. data have such a big impact on the forex market?
There are several reasons why U.S. data has such a big impact on the foreign exchange market:
First, the United States is one of the largest economies in the world, and its economic conditions have a significant impact on the global economy. Therefore, economic data in the United States, such as gross domestic product (GDP), inflation rate, interest rates, etc., can have a profound impact on the foreign exchange market. Secondly, the US dollar is one of the most important reserve currencies in the world, accounting for more than 60% of the world's total foreign exchange reserves. Therefore, economic data from the United States will affect not only the movement of the US dollar, but also the exchange rates of other currencies. In addition, U.S. data is often considered to be the "weather vane" of the global economy, and changes in its economic data often have an impact on investor confidence and expectations, which in turn affects the trend of the foreign exchange market. Finally, the foreign exchange market is a global market, and exchange rate movements between countries are often affected by a variety of factors. And the economic data of the United States is often one of the important factors. To sum up, the impact of U.S. data on the foreign exchange market is not only due to the importance of its economic position, but also to the authority and influence of its data. Therefore, in the foreign exchange market, investors need to pay close attention to the economic data and policy trends in the United States in order to better grasp the market trends and opportunities.