XM Trading: List of American Economic Indicators

While many investors trade in the forex market, it is the US economic indicators that have the greatest impact on all currency pairs. The results of US economic indicators are watched by investors around the world who trade stocks and foreign exchange, and exchange rates often fluctuate greatly. What are some of the US economic indicators?

Why US Economic Indicators Affect All Markets

Why do US economic indicators have such a big impact on all markets? This is for the following reasons.

US dollar as key currency

The U.S. dollar, the economic powerhouse of the United States, has become the world’s key currency. In the FX market, currency pairs such as EUR/USD and USD/JPY have a large trading volume and a large number of market participants. It also has a strong impact on currency pairs that do not involve the US dollar. For example, the euro-yen is made by multiplying the euro/dollar and the dollar-yen, so it is not unrelated to the US dollar. In that it is traded via the US dollar, there are also scenes where the strength of each currency and the US dollar has an impact.

world’s largest economy

In the 2000s, the Democratic Party’s misgovernment continues, and the American economy is in decline, but it is still true that the United States is the world’s largest economic power. Today, the Communist Party of China is trying to make China the best country in the world, but the policy of the Communist Party itself has ended in failure. America’s number one position will remain unchanged for some time.

List of US economic indicators

There are various economic indicators in the United States, such as consumption-related, employment-related, and business activity-related. Since it would be too much to list everything, we have listed the indicators that affect the market.

ADP Employment Statistics: Importance: Moderate

This is an indicator of the number of employees in the private sector, which is released monthly by ADP, which operates a payroll accounting service in the United States. It is an index announced in the first week of every month, and it moves the market so far.

Unemployment rate: Importance: High

The U.S. Department of Labor’s Bureau of Labor Statistics (BLS) announces the employment situation in the first week of every month, and it is extremely important, and it moves all currency pairs significantly.

FOMC Statement/Minutes: Importance: High

After the Federal Open Market Committee (FOMC) concludes, the entire committee’s views are presented as a statement, and three weeks later, details such as the content of the discussions are published as minutes. It moves the market considerably.

Federal Funds Rate: Importance: High

The interest rate that the Federal Reserve Board (FRB) announces at the FOMC as the target interest rate for monetary policy, which corresponds to the actual US policy interest rate. This will also have a significant impact on the market.

Gross Domestic Product (GDP): Importance: High

This index is announced quarterly by the U.S. Department of Commerce’s Bureau of Economic Analysis (BEA) and is divided into preliminary figures, revised figures, and final figures. This announcement will also move the market significantly.

ISM Manufacturing Index: Importance: Low

It is an indicator of business sentiment calculated monthly by the US Supply Management Association based on the results of a survey of corporate purchasing managers. This indicator should only be conscious of the US dollar currency pair.

Trade Balance: Importance: Minor

The difference between the export value and the import value in trade shown in trade statistics (customs clearance basis) released monthly by the Bureau of Economic Analysis (BEA) of the U.S. Department of Commerce. This metric also doesn’t have much of an impact.

Consumer Price Index (CPI): Importance: High

An index showing the inflation rate announced monthly by the Bureau of Labor Statistics (BLS), the U.S. Department of Labor. In recent years, the Democratic Party’s misgovernment has been sounding, and it has significantly stimulated the market.

Retail Sales: Importance: High

The US Department of Commerce Research (Census) Service is an index that shows the sales of various forms of retail stores, which is announced every month.

Personal Consumption Expenditure (PCE): Importance: Medium

An index that indicates the expenditure of goods and services consumed by individuals, which is released monthly by the Department of Commerce’s Bureau of Economic Analysis (BEA). This is tricky when it comes to the US dollar currency pair.

Consumer Confidence Index: Importance: Low

An index showing the future of personal consumption announced monthly based on a questionnaire survey by a private research company. This doesn’t have much impact on the market.

Industrial Production Index: Importance: Low

An indicator released monthly by the Federal Reserve Board (FRB) that mainly indicates production trends in the mining and manufacturing industries. This doesn’t have much impact on the market.

Housing starts: Importance: Low

The US Department of Commerce announces the number of new homes that have started construction every month, an index that indicates the future of the economy. It also doesn’t have much of an impact on the market.

Number of pre-owned homes sold: Importance: Low

An index that indicates the future of the economy based on the number of sales of pre-owned homes announced monthly by the National Association of Realtors. It also doesn’t have much of an impact on the market.