Economic Indicators

Forex economic indicators. Detailed explanation on various forex economic indicators and how to trade using these indicators

Trading the Michigan consumer sentiment report

Trading the Michigan consumer sentiment report

Economic Indicators
The Michigan consumer sentiment report (MCSI), also known as the University of Michigan consumer sentiment report (UM Consumer sentiment report) or Michigan Consumer Sentiment report is an indicator of the consumer confidence on various aspects ranging from personal finance to purchasing power. The UM consumer report is based on telephone surveys and is a front runner to indicate any hints on future interest rate decisions. The UM consumer sentiment report is sampled on a monthly survey of around 500 consumers as compared to the CCI or Consumer Confidence Index extablished by the Conference board. The Michigan Consumer Sentiment is considered to be a leading economic indicator as it can potentially predict the general consumer spending, which plays a major role in the overall economic a...
How to trade Crude Oil Inventories Report

How to trade Crude Oil Inventories Report

Economic Indicators
Crude oil inventories is a weekly report published by the EIA, Energy Information Administration and covers the inventory report for the previous week. The report marks the weekly increase or decline in the crude oil inventories of oil stored in facilities in the US. For crude oil traders the inventory report is looked up to, to understand the weekly fluctuations of supply and demand. Broadly speaking, when demand rises, inventories decline thus pushing prices higher and when demand for Crude oil falls, the prices drop in accordance. While the crude oil inventories report is an important news event to take into consideration, Crude oil traders should note that price of Crude oil are also influenced very easily by geo-political events. When looking at the Crude oil inventory report, ...
Impact of Non Farm Payroll on the USD

Impact of Non Farm Payroll on the USD

Economic Indicators
The USD currency is one of the most traded currencies in the forex market. This is primarily due to the attribute that the US hosts the biggest economy in the world. In forex trading, when it comes to the basics, you actually buy one currency for another and vice versa. In this scenario, any economic news that affects either of the currency pairs can infact play a big role when it comes to trading those respectice currencies. Forex trading is nothing but the economics of supply and demand. A country that posts high economic growth will inadvertently see an increase in the demand for its currency. The US Non Farm payroll is an economic indicator that publishes the monthly employment numbers. The NFP data is basically an indicator where in an increase in jobs represents a growing economy ...
What is the Consumer Price Index in forex trading

What is the Consumer Price Index in forex trading

Economic Indicators
It is important to know which Forex resources are accurate indicators of economic status and currency strength. One such indicator is the Consumer Price Index (CPI), a monthly report that is released around the second or third week. With this information, investors can begin making intelligent decisions on their Forex trading platforms. The Consumer Price Index The Consumer Price Index, also referred to as the Retail Price Index, is an index that measures the change in price for a hypothetical (representative) quantity of goods and services such as food, energy, housing, clothing etc, which represents the number purchased by the average consumer. In simpler terms, it is an educated projection of retail sales, also known as the 'cost of living index' Importance of CPI in forex trading T...
Non Farm payroll explained

Non Farm payroll explained

Economic Indicators
Nonfarm payroll employment is an influential statistic and economic indicator released monthly by the United States Department of Labor as part of a comprehensive report on the state of the labor market. The NFP report causes one of the consistently largest rate movements of any news announcement in the forex market. As a result, many analysts, traders, funds, investors and speculators anticipate the NFP number - and the directional movement it will cause. With so many different parties watching this report and interpreting it, even when the number comes in line with estimates it can cause large rate swings. Read on to find out how to trade this move without getting knocked out by the irrational volatility it can create. It is a compiled name for goods-producing, construction and man...