Money supply in Forex market
These are the indicators of total monetary volume. The M1 part includes the most liquid assets: cash, money on “till called for” accounts and traveler’s checks. The M2 aggregate contains the M1 part, as well as all fixed deposits up to $100000 and other highly liquid investments. M3 contains the M2 part and all fixed deposits of more than $100000.
All three (M1, M2 and M3) indicators are released weekly on Thursdays at 16:30 EST (New York) and display the change in total monetary volume for the week. They are more an informational index with less impact on the market compared to other indicators. Only in the case of some European countries do they have a strong impact on the Forex market, such as GBP (by M1) and EUR (by M3).
Written by FxErvin