Forex Trading: Economic Indicators
US Economic Factors that Affect the Foreign Exchange Market
There are a number of US economic indicators that affect trading on the foreign exchange market - impacting both anticipated changes and the actual figures that show up on the market. Below you will find those economic factors that have the greatest impact for Forex trading.
Consumer Confidence Index
On the last Tuesday of every month, a report is issued by the Conference Board. This report provides the results of surveys taken in 5,000 households about the market as they see it and how strong their income is in relation to it.
Consumer Price Index
Once a month, the Bureau of Labor and Statistics evaluates government policy and the way it impacts inflation and the overall cost of goods and services.
Employment Report
Each month, the Department of Labor releases a report of how many jobs were created, how many jobs were lost, average wages and the average number of hours worked as well as changes to the unemployment rate.
Gross Domestic Product
The overall measure of a country’s economy; quarterly statistics are shared, but the report is annual.
Retail Sales Data
A decline in sales tends to indicate a loss of consumer confidence; when retail sales are increasing, it is indicative that the average consumer feels more comfortable.
Trade Balance Reports
Surpluses and deficits are reported based on the value of goods and services exported from the country in relation to value of goods and services that are imported.
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