Key indicators Forex

Key indicators Forex

Some financial indicators have a history of moving financial markets when the actual figures match consensus. This article explains what some of the best financial indicators are, and those traders should pay particular attention to trading in the forex market.

APICS Survey - APICS The survey provides detailed information on the manufacturing sector. This survey is less well known than the ISM, but can also suggest trends in production. The diffusion index does not move in tandem with the ISM, each month, but sometimes the two move in the same direction. Since manufacturing is a major sector of the economy, investors can get an idea of the general economic backdrop of several investments. These surveys also have an important role in learning forex trading.

Business Inventories - The level of inventories in relation to sales is an important signal of the short-term direction of production activity. Investors need to closely monitor the economy in general, because it dictates how various types of investments will perform. Growing inventories can be an indication of optimism that sales of businesses will be increasingly in the coming months. By examining the ratio of inventories to sales, investors can see whether the requirements of production or extended contract in the near future. Inventory data business provide a valuable forward-looking tool for the crossing of the economy and is widely used by trading strategies forex.

Chain store sales - It is the volume of monthly sales department, chain and discount clothing stores. Sales are reported by individual retailers. Chain store sales are an indicator of retail sales and consumer spending results. Consumer spending represents two-thirds of the economy, so if you know what consumers are up, you have a fairly good grip on where the economy is headed. Sales are reported as a change from the same month a year ago. It is important to know how strong sales actually were a year ago to make sense of this year's sales. In addition, sales are usually reported for "comparable stores" in case of company mergers.
Construction costs - Data are available in nominal and real (inflation-adjusted) dollars. Because of their trading strategies forex, companies only put money into the construction of new factories or offices when they are confident that demand is strong enough to justify the expansion. The same goes for individuals making the investment in a home. That's why construction spending is a good indicator of the economy momentum.

Consumer confidence - it is conducting a study on consumer attitudes to both the current position as well as expectations regarding economic conditions conducted by the Conference Board. The level of consumer confidence is directly related to the intensity of consumer spending. Consumer spending represents two-thirds of the economy, so the markets are always dying to know what consumers are up to and how they might act in the near future. Consumers are more confident about the economy and their personal finances, the more likely they are to spend. In this spirit, it's easy to see how this index of consumer attitudes gives an overview of how the economy. Changes in consumer confidence and retail sales and move in tandem month by month.

Consumer Prices Index (CPI) - It is to measure the average price of a fixed basket of goods and services purchased by consumers. Monthly changes in the CPI represent the rate of inflation. The CPI is the most closely followed indicator of inflation in the United States, some training institutes forex also wishes to record it for training purposes. Inflation is a general increase in the cost of goods and services. The relationship between inflation and interest rates is the key to understanding how data like the CPI influence the markets. By following the trends in inflation, whether high or low, rising / falling, investors can anticipate how different types of investments will perform.
Current Account - It is a measure of that country balance of international trade in goods, services and unilateral transfers. The level of the current account, as well as trends in exports and imports, are followed as indicators of trends in foreign trade. American on trade with foreign countries hold important clues to economic trends here and abroad. According to experts in training forex these data can directly affect the financial markets, and in particular the value of the dollar exchange.