Don’t miss it, US reports that impact the forex market,
considering that the US Dollar is one of the most traded currency units in the Forex market, it is highly important for us to never miss the US reports especially if we are trading with fundamental analysis and economic indicators. If you now learn Forex and consider trading on USD, this article will help you to find out some influential US reports in Forex market.
List of US Reports That Influence the Forex Market
It’s no secret that the world of foreign currency can be highly sensitive to the change of a country’s economy condition. This is because a nation’s currency is basically a reflection of a country’s economy strength. Since US economy is considered as the biggest one in the world and possibly influence the financial market performance widely, these US reports can be helpful for your
Forex trading.
• Gross Domestic Product
When it comes to measure the overall economy health, GDP is surely the largest measure. Even though, it takes a bit of time for seeing the direct effect of GDP to Forex market, it is still an essential indicator that can move the market. This indicator is more like a good measure employed to verify where you stand in the cycle of Forex business.
• Nonfarm Payrolls
For majority Forex traders, NFP is another most essential indicator that should be monitored in monthly calendar. The Bureau of Labor Statistics will release this report on every first Friday of each month. The release of NFP is usually followed by the rate of unemployment report which is also another economy indicator to take into account in forecasting the Forex market.
The thing that makes Nonfarm Payrolls report is important for Forex trader is due to its tendency to change the direction of Forex market substantially. At this point, just a single release of NFP can transform the price movement sharply in just one minute. This report has such large effect on the market prices since it comes like GDP report, but released in monthly basis.
• Federal Funds Rate
The meeting of Federal Open Markets Committee which is held eight times in a year to determine US monetary policy has always been another indicator that affects the Forex market. As you might have known, interest rates become a key that drives Forex rate. When there is a change of federal funds rate as a result of the meeting, the market can be affected too.
• Consumer Confidence Index
When it comes to consumer confidence index or CCI, there are two best known and commonly followed by Forex traders and analysts: CCI collected by Conference Board and Consumer Sentiment Index collected by the University of Michigan. These reports are crucial since nothing drives the United States Economy than the consumer spending. It can let you know how US consumers feel which affect economic growth.
• Consumer Price Index
In addition to the consumer confidence index, there is also consumer price index or CPI which calculates the cost of services and goods. This report provides us information about how fast prices are falling or rising in the market. The CPI report is usually used to predict inflation in a country which is known to have higher chance to alter the Forex rate.
Final Thoughts
Some of the US reports above are known as the economic indicators which are used to predict the prices movement in the Forex market. In addition to the mentioned reports above, there are Industrial Production Index, Capacity Utilization and Retail Sales which can also affect the Forex market. Now, don’t forget to learn Forex indicators above before you make a trading decision.