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Economic data affecting foreign exchange trading
20-11-2017 | No Views : 238
The importance of the special economic data in foreign exchange trading is different. Whatever the trader's or analyst's method of anticipating the future movement of the price, the important economic data should be taken into consideration to avoid the risk of violent price movement at the time of the release of the data.
High-level economic data has a strong impact on markets and is very volatile. Therefore, even if the technical analyst or trader does not care about the fundamental analysis, he should be concerned with the important data to avoid trading at the time of issuance to avoid risk.
The main analysts rely on economic data to predict the future movement of prices and build their expectations for the performance of the country's economy for the coming period. In this article we will address the economic data of high importance and start with US economic data.
US Economic Data:
Changes in Non-Farm Payrolls (NFP)Is a news release on Friday of the first of each month, and if its value is greater than expected it will have a positive impact on the dollar, but if the result is less than expected affects negatively on the US dollar, and it is a news of high importance and cause a sharp movement of the currency rate immediately .
It is issued by the Bureau of Labor Statistics at the Ministry of Manpower. It measures the change in the number of employees except those working in the following sectors (the agricultural sector, the non-profit organizations, the private craftsmen and the government sector).
Gross Domestic Product (GDP)The US GDP report is issued quarterly by the Statistics Bureau of the Ministry of Commerce, and it is a very important news that may trigger a violent price movement as soon as it is released.
If its value is higher than expected, it will be positive for the US dollar, but if it is lower than expected it will have a negative impact on the currency.
All investors are interested in its results, and when the central bank's monetary policy report is also concerned with it, it represents the main indicator of measuring economic growth rates. It measures the total monetary value of services and commodities produced by the state.
US Producer Price IndexThe second most important indicator that measures inflation after the consumer price index, but differs in that it is calculated based on producer prices.
A report on producer prices from the Labor Statistics Bureau at the Ministry of Manpower is issued on a monthly basis, which is of high importance, causing a sharp movement of the dollar as soon as it is issued.
The report affects the US dollar positively if its outcome is higher than expected, but if it is less than expected, its impact on the dollar is negative.
The PPI does not include food and energy prices, which is derived from the PPI.
US Consumer Price Index (CPI)The US Consumer Price Index (CPI) is released monthly by the Bureau of Labor Statistics at the Ministry of Manpower, one of the best indicators of inflation measurement.
And falls under the news of high importance that cause a sharp move to the currency rate immediately, and if the result of the report is larger than expected, the impact on the US dollar is positive, but if the result is less than expected, the impact is negative.
Dear reader, we have completed the first part of the economic data, which we have dealt with part of the US data, which we will all address in the next lessons.
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