Economic Indicators

Monday, September 10, Tracks inflation in producer and import prices in Switzerland. Leave a Reply Cancel reply Your email address will not be published. Simply put, inflation reflects a decline in the purchasing power of the Euro in Germany , where each Euro buys fewer goods and services. Add to Calendar Cancel. At one time, experienced professionals and economists had a distinct advantage in receiving this data in a timely fashion.

The fast-updating Economic Calendar covers all important events and releases that affect the forex market. The calendar is timely, interactive, & customizable.

What is the Economic Calendar?

If you own the currency with a higher interest rate, you will be receiving a payment for holding your currency.

If you own the currency with the lower yielding interest rate, you will need to pay to hold the currency pair. The interest rates of each country are embedded into the forward rates that you will pay or receive if you transact beyond the spot rate which is 2-business days. Generally, the higher yield currency attracts investors, driving up the value of the currency pair. Therefore, many traders track the interest rate differential and pay attention to forex economic news as it will move the forex markets.

The interest rate differential is used to calculate the forward points which are added or subtracted to the spot rate to generate the forward rate. One of the best ways to track fx fundamental news events is to use an economic calendar. This tool is essential to monitoring financial events and determining the forecasted number of a news release relative to the actual data release.

A forex economic calendar allows both novice and experienced traders to stay informed about potential price moves that can occur due to fundamental news reports. An economic calendar will focus on economic events, and it will also show you when there are central bank meetings, political elections as well as bond auctions. There are many ways to use a financial calendar. Since you know when events are going to take place, you can manage your risk and initiate positions based on future events.

If you plan on initiating a position, this type of information is invaluable. Political events and votes can generate significant volatility.

For example, following the Brexit vote on June 23, , the pound tumbled, but if you were not aware that it was going to occur, you could have lost a significant amount of money due to being uninformed. Finding a financial calendar that has political information as well as economic data is crucial. Additionally, it is imperative that you have a financial calendar that has central bank information.

Nothing will move a currency pair like a surprise change in monetary policy. There are a plethora of great financial calendars, on reputable websites such as Reuters, Bloomberg and Forex Factory. If you want to customize one, you can enter the information yourself on a spreadsheet to make sure you are capturing all the information that you deem crucial to your trading decisions.

While central bank meetings and political events generate volatility occasionally, scheduled monthly economic data consistently provides the backdrop for trading opportunities for the fundamental trader. There are several data points including employment, inflation, and manufacturing that are considered major market-moving economic indicators. One of the most watched economic indicators is the United States employment report, the NFP report , which is released on the first Friday of every month unless the first Friday is the first day of the month and then the release is pushed back to the second Friday.

Additionally, if the first Friday is a holiday, the government will push the report back to the second Friday of the month. There are two reports released by the Department of Labor which make up the employment report. There is the non-farm payroll report, which is a report that counts the number of employees added via a corporate survey, and there is the employment rate report, which is a household survey report.

Both reports cover the same survey period. The corporate report shows all the employees added or subtracted from businesses that are a specific size, while the household report, surveys a certain number of homes. The Non-farm payroll report is the most widely viewed report and generally the most important for currency traders. The unemployment rate shows the percent of the population that are looking for work.

It also has a sub-component that tells you the number of people that were hired and fired during the survey period. A third part of the employment report is hourly earnings, which reflect wage gains. Wages along with housing make up a large component of inflation expectations, which makes the employment report the most significant economic report of the month. When exports are greater than imports, the UK experiences a trade surplus. Trade surpluses indicate that funds are coming into the UK in exchange for exported goods.

Because such exported goods are usually purchased with Pounds, trade surpluses usually reflect currency flowing into Britain, such currency inflows may lead to a natural appreciation of Pound Sterling, unless countered by similar capital outflows. At a bare minimum, surpluses will buoy the value of the currency. There are a number of factors that work to diminish the market impact of UK Visible Trade on markets.

The report is not very timely, released monthly about forty days after the reporting period. Developments in many of the components that comprise the figure are also usually well anticipated. Lastly, since the report reflect data for a specific reporting month, any significant changes in Visible Trade should plausibly have been already felt during that quarter and not during the release of data. But because of the overall significance of Trade on Foreign Exchange Rates, the figure has a history of being one of the more important reports out of the UK.

The headline figure is expressed as the value of the merchandise trade surplus or deficit in billions of Pounds. A measure of the manufacturing output of the energy sector, factories, and mines. Industrial production is significant as a short term indicator of the strength of UK industrial activity. Industry accounts for about a quarter of overall GDP.

Because industrial production accounts for most of the volatility in GDP, foreknowledge of trends in manufacturing go a long way in forecasting UK output.

High or rising Industrial Production figures suggest increased production and economic expansion, healthy for the Pound. However, uncontrolled levels of production and consumption can spark inflation. In times of inflation the Bank of England may raise interest rates to control growth.

Measure of the money supply used by the Bank of Japan. The figure includes all currency in circulation plus all bank deposits.

This indicator tends to track closely with the total money supply. The figure focuses mostly on individual deposit accounts rather than institutional accounts, making it a more attractive money indicator than broad liquidity measures. A survey of the current state of the business sector in Australia. Based on a survey of hundreds of small to large sized companies, the National Australia Bank delivers monthly and more comprehensive quarterly Areports from statistical and antidotal data.

This comprehensive survey primarily provides insight into the state of the Australian economy and puts forth leading indicators that signal its future direction. Thus the survey's findings, if unexpected, have the power to move markets directly.

The National Australia Bank releases both a monthly and quarterly report. The quarterly is more comprehensive, surveying around small to large non-farm firms. The quarterly provides greater detail on the data as well as provides a short to mid-term outlook of Australia.

Because of seasonal volatility and government protections the survey only excludes the farm sector. Based on a survey of hundreds of small to large sized companies, the National Australia Bank delivers monthly and more comprehensive quarterly reports from statistical and antidotal data.

Evaluates the monthly change in output produced by Japan's service sector. Japan's economy is very export based, because this report excludes manufacturing and only measures service industries catering mainly to domestic needs, the Tertiary Industry Index is a key indicator of domestic activity. The index incorporates data from firms involved with wholesale and retail trade, financial services, health care, real estate, leisure, and utilities.

The report excludes industrial manufacturing sectors that tend to be influenced by foreign demand. The tertiary industry index is posted monthly as a percentage change from the previous month's figure. Tracks trends in machine tool orders placed by major manufacturers in Japan. Machine Tool Orders is considered a leading indicator of business capital spending, and increases are indicative of stronger business confidence and a better future outlook. Higher capital spending is also positive for the Japanese employment situation, as companies will generally require new employees to run and maintain new machinery.

The Machine Tool Orders figure tracks closely with the Machine Orders figure put out by the Economic and Social Research Institute, but tend to affect the market more since it is released nearly a month earlier. The Claimant Count is the UK's most timely measure of unemployment. The report measures the number of people who claim unemployment benefits, but actively seeking work. The Claimant Count serves as a barometer for the health of the UK labor market.

Higher job growth accompanies economic expansion and could spark inflationary pressures. The headline number is a percentage change in the figure. Need to ask questions to an analyst? Measures the number of people who claim unemployment benefits, but are actively seeking work. It is similar to the Claimant Count except the headline figure is as an actual number, whereas the Claimant Count is a percentage. They ask experts to evaluate the current situation and to predict the future direction of the economy.

For all components of the survey, responses are restricted to positive, negative, or unchanged. This simple structure allows the survey to be quick and efficient in terms of turnaround time, as well as easy to understand and interpret. The Economic Sentiment Indicator assesses future economic expectations for the whole Euro-zone. The results are summarized as the number of positive responses minus the number of negative responses.

A higher headline figure indicates a positive expectation for Euro-zone economy. Technical Note on Headline Number: The results of the survey are always presented as the difference between those experts that optimistic and those are pessimistic. For instance if 25 percent of analysts expect improvement, 35 percent expect decline, and 40 percent expect no change, the headline figure is Reflects the rate of growth in housing construction.

Housing Starts act as an indicator measuring the strength of Canada's construction sector and housing market. Economists also use the figure as a leading indicator for the economy as a whole due to Housing Starts' sensitivity to changes in the business cycle. Housing Starts slow at the onset of a recession and quickly grow at the beginning of an economic boom; consequently, a high Housing Starts figure forecasts strong economic growth.

The headline figure is the percentage change in new home starts. Measures the volume change of output of the manufacturing and energy sector. The industrial sector contributes to only a quarter of the Euro-zone GDP. However, most variations in GDP come from the industrial sector, whereas other sectors that contribute far more to national output historically have been very consistent regardless of economic cycles.

That is why tracking industrial production is very important for forecasting GDP changes. Gauges demand for mortgage application in the US. Growth in mortgages suggests a healthy housing market. Due to the multiplier effect housing has on the rest of the economy, rising activity suggests increased household income and economic expansion.

Among the various indices measured in the survey, the purchase index and refinancing index most accurately reflect where the housing market is headed.

The purchasing index measures the change in existing home sales in all mortgage applications, while the refinance index measures the mortgage refinancing activity in all mortgage applications.

Measures the extent to which Canadian manufacturing companies make use of their productive capacity factories and machinery. Capacity Utilization Rates act as an indicator of overall demand in the economy.

High Capacity Utilization Rates reflect that resources are in high demand, and this exerts inflationary pressures. High Capacity Utilization Rates may also lead to new capital investments, such as new plants and equipment that promote growth in the future. The headline figure is reported as the ratio of actual production to potential production. The data is gathered from the Capital and Repairs Expenditure survey.

Unlike some of the other surveys done by Statistics Canada , this survey is not mandatory. Measures the price change of food and food services purchased by households.

Higher food prices can result in economic slowdown because less disposable income will be used for non-food expenditures. Higher food prices can also result in inflation and signal future monetary action. Gauge for costs of homes in the United Kingdom. The figure is based on surveyors' opinions on the state of the market, calculated as is the percent of surveyors reporting a rise in prices minus those reporting a fall.

A rise in house prices indicates a strong housing market, which generally reflects a strong overall economy. As prices for input materials and the overall cost of manufacturing change, companies adjust retail prices accordingly. The headline numbers are the percentage change in the index month or month and annually. The total value of machinery orders placed at major manufacturers in Japan. Machine Orders is considered the best leading indicator of business capital spending, and increases are indicative of stronger business confidence and a better forward outlook.

Higher capital spending is also positive for the Japanese employment situation, as companies will generally require new employees to run new machinery. The headline figure is the seasonally-adjusted month-on-month and annualized percentage change. Forex Factory Spread Indicator forextraining.

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Apr 02,  · MT4 News Calendar Indicator Platform Tech. Forex Factory. Home Forums Trades News Calendar Market Brokers News impact in forex - Need calendar data for my indicator 6 replies. Forex Factory® is a brand of Fair Economy, Inc. The ForexLive economic calendar can help you get a better perspective on forex news events that could impact your trading. Economic data indicators and . Major Forex economic indicators typically come in the form of economic news releases that are disseminated daily. Most the major economic events that are released are reported by sovereign governments throughout the globe.