A Considerable proportion of FOREX market is traded on US dollar (USD) which serves as a base currency which has the biggest repercussion on the prices of respective currency. In which Gross Domestic Product (GDP) plays as key role as it refers to the aggregate sum of all goods and services in a country which includes foreign nationals.
There are several other important economic indicators that are found in the economic calendar:
Economic Indicators: 10 * 2 + (1)
- Consumer Confidence Index (CCI)
It conveys the survey of approx. 5,000 US households that contemplate their purchasing power, financial health, monetary reserves enabled with the confidence of American consumers. It is abided by 3 factors such as; 1) Current Economic Conditions 2) Consumer Sentiment Index, and 3) Consumer Expectation Index. The objectivity of this survey can directly impacts the value of respective currency and hence it key measure of economic performance of a country.
Date of Release: On Last Tuesday of each month, presented at 10 am EST
- Employment Cost Index (ECI)
ECI report is announced every quarter that echo’s with the changes in employment bonuses, wages and benefits from the previous quarter of the year on hour basis. As the employment cost plays a major part as corporate expenditure, as they have direct impact on the price of goods and services. Hence it plays an important role that is used to depict the emoluments of future inflationary trend. It helps to gain the insights of market movements which is derived from the estimation of analyst.
Date of Release: On last Thursday of Jan, April, July & Nov, presented at 8.30 am EST
- Consumer Credit Report (CCR)
CCR is presented on FED meeting reports that measures the variations in amount of $ (outstanding) Unsecured loans for Individual and several institutions, It is not a good indicator as it doesn’t have huge impact on FOREX industry. But still a bit of information about the consumption and Retail Sales.
Date of Release: On end of every month, presented at 3 pm EST after 5 weeks of actual presentation.
- Durable Goods Report (DGR)
It serves as data which is released by US government that serves as benchmark for the traders to decide their trading position, it covers data on new orders that is seized from the manufacturers of durable goods like general electronic, cars and turbines. As the increase in this number can affects the general economic expansion, as it is best to consider the moving average before the actual results has been published.
Date of Release: On 20th of very month, presented at 8.30 am EST (Released after 6 weeks)
- Consumer Price Index (CPI)
In the American economy, Inflation serves as an important benchmark that considers the prices of goods and services that serves as groceries and haircuts. It is one of the important indicator, as consider by Fed Decisions. As it makes the adjustments with cash flows such as pension. Medicine and Health care expense, Cost of living, etc.
Date of Release: In mid of month, presented at 8.30 pm EST
- Existing Home Sales (EHS)
It is reported by National Association of Realtors that displays the existing number of home sales. With the average prices of sales and house inventory. The figures help you to represent the aggregate demand of the housing market. This report states the healthy figures of the economy.
Date of Release: On every 4th week of the month, presented at 8.30 am EST
- Gross Domestic Product (GDP)
It is one of the most influential indicator which represents the total aggregate value of all the goods and services that is widely produced in the economy that is measured on quarterly basis. The declaration are irrevocable and plays a crucial measure to evaluate the economic trends. It is data which every professional traders rely while evaluating the market conditions.
Date of Release: On 4th week of every quarter end, presented at 8.30 am EST
- Money Supply (MS)
It is one of the most important type of indicator that represent the amount of money soaring in the economy that is freely accessible for spending. It is mostly released every week in span of long and short term movements. As a relationship between the GDP growth rate, inflation, and money supply. In the economic climate, as it worth considering part of extensive valuation.
Date of Release: On every Thursday, presented at 4.30 pm EST
- Factory Orders Report (FOR)
It combines the information about both the Non-Durable and Durable Goods such as food & clothing. Even though the doesn’t effect the market but still it plays one of the most important leading indicator for GDP forecasting, and inventory as new order making. The report also considers such as new inventory and new orders.
Date of Release: On First week of month, presented at 8.30 am EST
- Housing Stats (HS):
It is a result of all the building or residential property across the United States (US) which is considered to be one of the leading indicator as it shows the health of real estate economy and construction industry. It shows the market trend that is used for buying the new homes and consumer goods.
Date of Release: On or around the 17th of every month, presented at 8.30 am EST
- Industrial Production (IP):
It is a report which is displayed by FED that shows as raw volume of goods and services such as mines, factories and electrical goods which is useful indicator for measuring the inflation and hence it serves as one of the important indicator.
Date of Release: On or around 16th of every month, presented at 9.15 am EST
- Employment Situation Report (ESR):
It is an extensive based indicator that is released by the BLS (Bureau of Labor Statistics) which consists of 2 types:
- Establishment Survey: It is a sample of 4,00,000 business that represents the important statics such as hours worked, non-farm payrolls, total working hours, etc
- Household Survey: It considers 60,000 households that represents the total number of individuals that form the national unemployment is derived from the most lagging indicator of the health of the economy.
The report serves as most influential indicator declared by FED can shift the market.
Date of Release: On First Friday of the month, presented at 8.30 am EST
- Mutual Fund Flows:
It shows the amount of money flowing into mutual funds. Our Analyst team predicts the arrival of MF shows the uncertainty in stocks or tend to invest when the market is low. It serves as an indicator that the economy is in road of recovery. Even thought the numbers or reports doesn’t plays an important role in the financial sector that serves as yardstick of investor’s tendency.
Date of Release: Released on end of 4th week after the end of month.
- Personal Income:
It is issued by BEA (Bureau of Economic Analysis) reported every month that provides the insights on behavioural spending and total economic consumption. The Consumer Price Index (CPI) serves as one of important barometer into figures, income and outlays. While this indicator is considered as one the important indicator even more than CPI (Consumer Price Index).
Date of Release: Released on end of every month, presented after 4-5 weeks of 8.30 am EST
- Producer Price Index (PPI):
It is a weighted index that is measured at producer or wholesale level from the Bureau of Labor Statistics (BLS). It serves as one of the lavish report in PPI Industry that is concerned with the manufacturing prices, excluding the energy components and food prices. It is a lagging indicator that encourages and has positive impact in the industry.
Date of Release: On 2nd or 3rd week of every month, presented at 8.30 am EST
- Purchasing Managers Index (PMI):
It is one of the important indicator and the report published every month by ISM (Institute of Supply Management) which is derived from the 5 sub indicators, such as Inventories, Production Level, New Orders, Employment Level, and Supplier Deliveries is one of the important indicator in the economy as a whole. A leading indicator of GDP and BLS reports that is used in conjunction with ISM non-Manufacturing Report.
Date of Release: On 1st Business day of every month, presented at 10 am EST
- Jobless Claim Report:
It is an indicator which display the total no. of initial fillings for jobless claims across the United States. It is issued weekly that provides real time access for the health of the economy. It has an impact on the FOREX markets that have a huge impact across the board.
Date of Release: On second Thursday of every month, presented at 8.30 am EST
- Productivity Report:
It is released on every quarter which measures the level of output that is achieved with per unit of labour. With release of GDP and labour Figures has historically gains in lower inflation, real income and increased profitability with the corporate level. It has a little impact on the markets, they provide the answer to complex calculations but has a little impact on the global markets.
Date of Release: Approximately after the Five weeks of previous quarters end, presented at 8.30 am EST
- Retail Sales Report:
It is one of the keenly anticipated numbers for various types on investors and economist. With the retail Trade, the traders can now track the value of dollar prices. Examining the non – store retailers. It has two figures indicated they are:
- Total Sales Figure
- ‘Ex-Autos Figure’
It serves a prediction of inflationary pressure and hence they can serves as a big market mover, rather following only the technical analysis.
Date of Release: On or around at 13th of every month, presented at 8.30 am EST
- Non-Manufacturing Report:
It is issued at every month by the ISM (Institute of Supply Management) which is one type of useful indicator and is much larger impact than the manufacturing report. It is a relatively new indicator and serves as yardstick for key indicator in the FOREX market.
Date of Release: On 3rd Business Day of the month, presented at 10.00 am EST
- Trader Balance Report:
It is widely used by various policy makers and investors that determine the health of US economy, It has nominal Trade deficit that represents the current value of US $ considering the exports minus the import. If the trade data is very different to previous reports. Then it can results into high volatility in the market. Hence it can have an added advantage to the traders in capital market.
Date of Release: On 19th of every month, presented at 8.30 am EST