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The only way to know the change of interest rates of any major country is by monitoring the economic calendar. Besides, the released schedule of the interesting announcement of central banks, which is released once a month, is also important. The demand for a currency will be very sensitive to the central bank interest rate. Traders using certain strategies like carry trade pay the most attention to the news of interest rates changes.

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PMI comes on a scale of 100, with a median of 50. Any number under 50 means the economy is in contraction, while over 50 suggests business expansion. A decrease could be read as an economic decline during the period, while an increase shows ongoing recovery.

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Let's use EUR/JPY. Say the BoJ (Bank of Japan) rate is 0.1% and ECB (European Central Bank) is around 0.5%. If BoJ increased interest rates to 0.5%, then their rates will be the same as ECB. However, these changes will entice investors to move their assets to Yen, because they want to get some profit from the changes. Such movement will cause the rise of demand on Yen so that its exchange rates against Euro will rise too.

On the contrary, if BoJ lowers their interest rates to 0.05%, investors will sell their Yens and move their investment into other kinds of assets like bonds, property, or another currency with higher interest, Yen's exchange rates will decrease.

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The employment amount depends on the jobs available. Active employees will affect the economic condition of the country significantly. The best economic condition is when there are more job vacancies available, so it will decrease the unemployed level. On the contrary, the economic contraction will cause the rise of the unemployed level that endangers the economy.

Some indicators of the employment figures are usually released in a month, and one of them is Non-Farm Payroll AS that attracts many traders' attention. The indicators determine the employment amount outside the agriculture sector as the reflection of the economic power of the United States. In other countries of major currencies such as Australia, Canada, and the Euro area, the indicator is called the Employment Change.

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