The
core essential monthly key economic data for currency traders.
Since
the currency markets are affected by changes in economic data the following
reports become the key data watch for currency traders -
1.
The Consumer Price Index (CPI)
The
CPI is the inflation index of the country; be it US inflation for USD, or UK
inflation for GBP, or Euro inflation figures for EUR etc for the true measure
of value of a currency expressed in real terms to a base year.
As
the USD is the major global commodity currency, the US data is keenly
tracked by a CPI that is calculated using a weighted basket of goods and
services, including food, energy, apparel, housing, transportation, and medical
care. Nearly all of the CPI components involve and rely upon commodities
like oil and gold.
2.
Gross Domestic Product (GDP)
GDP
is the total value of all goods and services produced in a country and
is expressed on a per capita basis which implies changes in demand for
commodities and their price changes as expressed as a percentage. In the
USA the Bureau of Economic Analysis tracks and reports on GDP.
3.
Balance of Trade
This is the net
difference between goods exported from a country. Since the US Dollar is the
most important currency in the world, traders keenly watch the United States
trade balances as the figure for goods imported from other countries versus
exports.
4.
Federal Funds Interest Rate.
US Fed Funds rates are determined monthly at FOMC. For Economic calendar and monetary policy of the US Fed see
5.
Non-Farm Payrolls
This
is a key summary of employment trends in USA excluding agricultural,
government, household employees, and workers in the not-for-profit industry.
Essentially this survey analyzes employment in U.S.-based businesses
which is about 80% of total employment. The Bureau of Labor Statistics compiles
the statistics as CES—current employment statistics. See here -
6.
Purchasing Managers’ Index (PMI),
The
PMI monthly figure in the USA is a composite index of U.S. manufacturing
activity inclusive of the energy sector.
7.
WTI Crude Oil Price
WTI
- West Texas Intermediate benchmark is the main price guideline for crude oil prices the traders and funds use for crude oil investments. It's
futures are traded on NYMEX. It is a high-quality crude oil, also called Texas
Light Sweet crude oil and its price is in close comparison to North Sea Brent
Crude.
8.London
Gold Fixing,
This
is the only commodity with intrinsic monetary value. TheLondon Fixing reflects
spot gold prices and serves as a benchmark. The London Fixing sets a single
gold price internationally, with a new fix set twice per business day. Its
origins date back to around 1671 with the emergence of London as a gold trading
center
9.
CRB Index, (Commodity Research Bureau)
The
Thomson Reuters Equal Weight Continuous Commodity Index is the CRB index in its
original equal weight form from 1957. This is the world’s first commodities
index consisting of a basket of 19 commodities.
Forex Market Education
Disclaimer - U.S. Government Required Disclaimer - Commodity Futures Trading Commission
Futures and Options trading involves risks of losses. No representation is being made that any reader and account will or is likely to achieve profits or losses similar to those that are being discussed on this blog http://forexeducationperspective.blogspot.com/. The past performance of any trading system or methodology discussed is not necessarily indicative of future results.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
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