Gross Domestic Product (GDP) is a key economic indicator that measures the total value of all goods and services produced within a country. It reflects the overall economic health and performance. In Forex, GDP plays a crucial role in determining currency strength. A strong GDP typically indicates a growing economy, which can lead to currency appreciation as investors seek assets in that country. Conversely, weak GDP growth can signal economic troubles, leading to currency depreciation. Traders closely monitor GDP data because: • Above-expected GDP growth often leads to a stronger currency due to expectations of higher interest rates or stronger economic fundamentals. • Below-expected GDP growth may weaken a currency as it signals slower economic activity, potentially prompting central banks to lower interest rates. GDP reports are thus central to Forex market analysis and forecasting currency movements.