These economic indicators are every trader is paying attention at, no matter newbies or experienced traders.
1. U.S. Nonfarm Payrolls
It measures the change in the number of people employed during the previous month, excluding the farming industry. It is released on the first Friday of every month. It is a foremost indicator for the consumer spending. The higher indicates a better economic activity.
2. U.S. Federal Interest Rates
Interest rates affect the attractiveness of one country’s currency. Generally speaking, higher interest rates increase the value of a country’s currency, as the higher interest rates attract foreign investment.
3. Gross Domestic Product (GDP)
GDP is an indicator for the health of a country. The data announce can have a great impact on one’s currency. If the data comes out higher than expected, it is generally considered as positive news. However, if the data comes out lower than expected, then it is generally considered as negative news.
4. Consumer Confidence Index (CCI)
CCI is a survey administered by the Conference Board. It measures whether the consumers are pessimistic or optimistic towards the economy. It is important to traders because it indicates whether the consumers are comfortable with their current employment status and willing to spend in the short term of the future.
5. Industrial Production Index (IPI)
IPI is a monthly indicator that measures the real output in the manufacturing, mining, electric, and gas sectors. Manufacturing sector only contributes less than 30% of the U.S. economy, but it has a huge effect on its output. It correlates much with the business cycle.