Today in the economy

[killersheep]

OK this is a little more like it. The first three articles do a fairly good job of describing "Positive effect on nation's currency", because it really is the foreign component, investment and exports, which drives up exchange rates.

The last one, about an increase in retail sales in New Zealand having a positive effect on the nation's currency, is a bit of a stretch though. Sure you could argue that an increase in retail sales has an upward effect on inflation which leads to an upward effect on interest rates, which has an upward effect on foreign demand in risk free investments, which as an upward effect on exchange, but it don't mean it's gonna happen. For example, one could just as easily argue that the apparent increase in spending power would also lead to an increase in demand for foreign goods, which would have a downward effect on currency.

Perhaps we should just take a step back instead of analyzing the nation's currency effect. Since I get this from a Forex site it will certainly be focused on currency exchange and speculation based off of that. If anyone can tell me where to get a more general focus economic calender, I would greatly appreciate it.

Looking at these numbers I am very suprised to see the US core retail sales in positive territory. I fully expected with the amounts of layoffs and foreclosures that people would be padlocking their wallets. I understand that they aren't huge numbers, but there aren't any spending spree months coming up either.

Fair enough. I'll just make one final observation about currency. Very often the value of a nation's currency relative to another's is held up as a barometer to the health of that nation's economy, but it ain't quite so simple. For example, you could argue that a fall in the exchange rate of your country in and of itself in some ways will have a positive effect on the economy, in that it makes foreign goods more expensive, thus encuouraging domestic consumption, while at the same time making your own products more attractive to foreign purchasers. Oh wait, increased exports will then drive the exchange rate back up.

It's all a bit complicated, ain't it. Equilibrium is a very interesting topic.

It is an interesting and very complicated topic, there is definately a reason I don't dabble in Forex. I picture it as an abacus that is infinately long and all the scales move independently and constantly, but sometimes together Each scale is based on a different variety of vastly complex economic systems.