How important is macroeconomics knowledge in forex trading?

Macroeconomics involves the study of the entire economy. The way the limited resources are utilized by a whole economy in production of goods and services for consumption is analyzed in macroeconomics. Economies can be those of state or even the world. The overall decisions concerning the economic factors affecting the whole economy are made. The economic factors affecting the state include the total national earning, the rate of employment, inflation and deflation rates and the total worth of the goods and services produced in the state among others.

Knowledge of macroeconomics is important in forex trading. Forex trading is all about trading money between different countries. Macroeconomics facilitates the study of all the indicators which affect an economy of a particular country. These indicators affect the prices of a country's currency which is an important factor in forex trading. Therefore, knowledge on macroeconomics is important in forex trading.