Economic Indicators

Give yourself the power to make the best trades possible – get to grips with all the essential economic indicators. Never miss a trick. Always be prepared. Knowledge and understanding of the key economic indicators is your edge on your journey of personal progress

Non Farm Payroll (NFP)

Revealing the number of new jobs created in the United States – excluding the farming sector – the NFP is one of the most anticipated monthly economic announcements. Released on the first or second Friday of every month, it can have a significant impact on the USD.

 

Crude Oil Inventories

The weekly report on the number of barrels of crude oil in the United States can impact both the USD and the price of crude oil. A high result can also cause the price of the USD and crude oil to go down in value, while a low result can cause both prices to surge.

 

Consumer Price Index (CPI)

A great indication of inflation or deflation, the CPI measures the change in prices of goods and services commonly used by consumers. Effectively, this weighted average of a basket of different goods determines the cost of living.

 

Interest Rate

An important driver of the forex market, the base interest rate of a country is set by its central bank. Raising interest rates could precede a curb on inflation, while falling interest rates could boost economic growth.

 

Gross Domestic Product (GDP)

Showing the value of all goods and services produced by a country, the GDP is a solid indication of economic health.

 

Consumer Confidence

Indicating how consumers feel about the current state of the economy, this predicts if consumers are likely to spend more money. The more people spend, the bigger the boost to the economy.

 

Purchasing Managers Index (PMI)

With excellent insight on the future of their companies, this index of all purchasing managers in a country can predict the economic health of the manufacturing sector.

 

Home Sales

New home sales is the number of newly built homes up for sale and existing home sales is the number of homes are currently for sale in the market.

Both are strong indicators of the health of the economy – the higher the figures, the stronger the economy.

 

Durable Goods Order

Showing the amount manufacturers plan to order in the near future, this figure lets us know how much they are hoping to produce and their view on economic health.

 

Retail Sales

Measuring the amount of retail sales in the country clearly shows how much money is circulating around the economy. The more people are shopping, the stronger the economy. But if consumers are cutting back on spending, it could be a sign of a contraction.