Monday, August 19, 2013

Forex Economi Indicator


What moves EUR/USD?

US economic indicators by Rank:

1. US Non Farm Payroll — measures new jobs created in States.
2. Interest rates — FOMC rate decisions.
3. US Trade Balance, European Trade Balance — a proportion between exports and imports in US economy.
4. U.S. Current Account 
5. US Treasury Inflow Capital (TIC) Data — a measure of how much foreign buying of country's securities takes place.
6. US Gross domestic product (GDP) — a measurement of growth in economy.
7. Federal Open Market Committee (FOMC) Rate Decisions — data about changes in currency rates.
8. US Retail Sales — a measure of strength of consumer expenditure. 
9. Consumer price index (CPI) — a measure of inflation in Europe.

Note, that because the US dollar is involved in over 80% of all currency trades, US economic data tends to be the most important in the Forex market.

What moves USD/JPY?

Besides US economic indicators, there are important data of Japan economy with its indicators:

Bank of Japan Monetary Policy Meeting — decides on measures to preserve strength of the currency.

Japanese Trade Balance — Japanese imports versus exports.

Gross domestic product (GDP) — growth in an economy.

Consumer price index (CPI) — a measure of inflation.

Industrial production index — a measure of activity in the Japanese manufacturing sector

Retail sales — a measure of strength of consumer expenditure.

Tankan report — assessment of Japanese business conditions: proportion of "optimistic" businesses to "pessimistic" ones.

Unemployment rate

Fundamentals for GBP/USD

All US economic indicators should be watched plus:

UK Housing Prices — number one indicator for Pound, UK Housing Prices are primary gauge of inflation in the UK.

Bank of England Meeting — provides an outline of monetary policy and changes to currency interest rates.

UK Unemployment rate

UK Retail Sales

Sourcing:


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