The Bank of Japan will be holding a press conference, their preferred method of communicating with investors. Topics at such conferences generally include economic outlook, inflation and changes in interest rates.
The Current Account index measures the difference in worth between exported and imported goods, services, and interest payments (exports minus imports).
Export data can give reflection on the Canadian growth.
Imports provide an indication of domestic demand.
The goods portion is the same as the Trade Balance figure.
Because foreigners must buy the domestic currency to pay for the nation's exports,
it may have sizable affect on the CAD.
A higher than expected reading should be taken as positive/bullish for the CAD,
while a lower than expected reading should be taken as negative/bearish for the CAD.
The Raw Materials Price Index (RMPI) measures the change in the price of raw materials bought by manufacturers.
It actually measures the rate of Inflation for raw materials.
Unlike the IPPI, the RMPI includes goods not produced in Canada.
The Industrial Product Price Index (IPPI) measures the change in the
price of goods produced domestically sold by manufacturers.
A higher than expected reading should be taken as positive/bullish for the CAD ,
while a lower than expected reading should be taken as negative/bearish for the CAD.
The Core Personal Consumption spending (PCE) Price Index measures the changes in the price of goods and services purchased by consumers for the purpose of consumption,
excluding food and energy.
Prices are weighted according to total expenditure per item.
It measures price change from the perspective of the consumer.
It is a key way to measure changes in purchasing trends and inflation in the US.
A higher than expected reading should be taken as positive/bullish for the USD,
(as the common way to fight inflation is raising rates, which may attract foreign investment) ,while a lower than expected reading should be taken as negative/bearish for the USD.
This Personal Spending indicator measures the change in the total amount spent by consumers on goods and services. As consumption is by far the largest component in the GDP of the US, the Personal spending is a key factor in the economic growth. It's also correlated with consumer confidence.
A higher than expected reading should be taken as positive/bullish for the USD,
while a lower than expected reading should be taken as negative/bearish for the USD.
This Personal Income indicator measures the change in the total value of income received by individuals. It's correlated with consumer spending and consumer confidence.
A higher than expected reading should be taken as positive/bullish for the USD,
while a lower than expected reading should be taken as negative/bearish for the USD.
The Building Consents (also known as Building Permits) show the number of permits for new construction projects issued by the government.
Building permits are key indicator for the condition of the housing market.
A higher than expected reading should be taken as positive/bullish for the NZD,
while a lower than expected reading should be taken as negative/bearish for the NZD.
The Gfk Consumer Confidence measures the level of consumer confidence in economic activity.
It is a leading indicator as it can predict the consumer spending, which is a major
part in the total economic activity. Higher readings point to higher consumer optimism. A higher than expected reading should be taken as positive/bullish for the GBP,
while a lower than expected reading should be taken as negative/bearish for the GBP.
The Manufacturing Purchasing Manager's Index (PMI) measures the activity level of purchasing managers in the manufacturing sector. Any reading above 50 indicates expansion,
while a reading below 50 indicates contraction.
It gives an indication about the health of the manufacturing section in Japan.
Traders watch these surveys closely as purchasing managers usually have early access to data about their company’s performance, which can be a leading indicator of overall economic performance. A higher than expected reading should be taken as positive/bullish for the JPY,
while a lower than expected reading should be taken as negative/bearish for the JPY.
The Industrial Production measures the change in the total outputs of the Japanese factories, mines, and utilities.
It gives us a good indicator of strength in the manufacturing sector,
and because the Japanese economy is more reliant on the industrial sector than most of the other countries, it gives us a good indicator to the total Japanese economy strength.
A higher than expected reading should be taken as positive/bullish for the JPY,
while a lower than expected reading should be taken as negative/bearish for the JPY.
The Retail Sales is a monthly measurement of all goods sold by retailers based on a sampling of retail stores of different types and sizes in Japan.
It is an important indicator of consumer spending and also correlated to consumer confidence and considered as a pace indicator of the Japanese economy.
A higher than expected reading should be taken as positive/bullish for the JPY,
while a lower than expected reading should be taken as negative/bearish for the JPY.
The Building Approvals (also known as Building Permits) show the number of permits for new construction projects issued by the government.
Building permits are key indicator for the condition of the housing market.
A higher than expected reading should be taken as positive/bullish for the AUD,
while a lower than expected reading should be taken as negative/bearish for the AUD.
The Retail Sales is a monthly measurement of all goods sold by retailers based on a sampling of retail stores of different types and sizes in Australia.
It is an important indicator of consumer spending and also correlated to consumer confidence and considered as a pace indicator of the Australian economy.
A higher than expected reading should be taken as positive/bullish for the AUD,
while a lower than expected reading should be taken as negative/bearish for the AUD.
The Current Account index measures the difference in worth between exported and imported goods, services, and interest payments (exports minus imports).
Export data can give reflection on the Australian growth.
Imports provide an indication of domestic demand.
The goods portion is the same as the Trade Balance figure.
Because foreigners must buy the domestic currency to pay for the nation's exports,
it may have sizable affect on the AUD.
A higher than expected reading should be taken as positive/bullish for the AUD,
while a lower than expected reading should be taken as negative/bearish for the AUD.
The Private Sector Credit measures the monthly change in the amount of money that the Australian private sector borrows.
A high number may indicates the private sector can afford larger expenses,
which may have positive affect on the economic growth.
A higher than expected reading should be taken as positive/bullish for the AUD,
while a lower than expected reading should be taken as negative/bearish for the AUD.
This Average Cash Earnings measures the change in the average income. It includes bonuses and overtime pay.
Earnings from financial assets and capital gains aren't included.
Higher income is positive for consumption,
therefore a rising trend in earnings is usually inflationary for the Japanese economy.
A higher than expected reading should be taken as positive/bullish for the JPY,
while a lower than expected reading should be taken as negative/bearish for the JPY.
The Housing Starts measures the change in the number of new homes or buildings that began construction.
It shows the strength of the Japanese housing market, which helps to analysis the
economy as a whole as the housing market is a key factor in the economy.
A higher than expected reading should be taken as positive/bullish for the JPY,
while a lower than expected reading should be taken as negative/bearish for the JPY.
UBS Consumption Indicator is a leading indicator of private consumption trends,
which is the most affective of the Swiss GDP.
This indicator is a combined reading of indicators, which measure
confidence, spending and retail activity.
A higher than expected reading should be taken as positive/bullish for the CHF,
while a lower than expected reading should be taken as negative/bearish for the CHF.
The German Unemployment Change measures the change in the number of unemployed people in Germany.
A rise trend indicates weakness in the labor market
and has a negative affect on consumer spending and therefore on the economic growth.
A higher than expected reading should be taken as negative/bearish for the EUR, while lower than expected reading should be taken as positive/bullish for the EUR.
The Unemployment Rate is a measure of the percentage of the total labor force that is unemployed but actively seeking employment and willing to work in Germany.
A high percentage indicates weakness in the labor market.
A low percentage is a positive indicator for the labor market in Germany and should be taken as positive for the EUR.
The Italian Retail Sales is a monthly measurement of all goods sold by retailers based on a sampling of retail stores of different types and sizes in Italy.
It is an important indicator of consumer spending and also correlated to consumer confidence.
A higher than expected reading should be taken as positive/bullish for the EUR,
while a lower than expected reading should be taken as negative/bearish for the EUR.
The Net lending to individuals measures the change in the value of new
credit given to consumers.
It has major affect about consumer spending and also
correlated with consumer confidence.
A higher than expected reading should be taken as positive/bullish for the GBP,
while a lower than expected reading should be taken as negative/bearish for the GBP.
The Mortgage Approvals measures the number of new Mortgage Approvals during the last month.
It provides information about the buyers in the housing market in the UK.
Usually, this release doesnt make great impact,
because the BBA Mortgage Approvals, which released a week before, gives
us an indication of the more than 50% of the mortgage market condition in the UK.
A higher than expected reading should be taken as positive/bullish for the GBP,
while a lower than expected reading should be taken as negative/bearish for the GBP.
The M4 Money Supply measures the worth of all currency and liquid cash assets held by the public.
The money supply is considered an important indicator of inflation,
as monetary expansion adds pressure to the exchange rates.
A higher than expected reading should be taken as positive/bullish for the GBP,
while a lower than expected reading should be taken as negative/bearish for the GBP.
The Consumer Price Index (CPI) measures the changes in the price of goods
and services. The CPI measures price change from the perspective of the consumer.
It is a key way to measure changes in purchasing trends and inflation in the Euro-zone.
A higher than expected reading should be taken as positive/bullish for the EUR
(as the common way to fight inflation is raising rates, which may attract foreign investment), while a lower than expected reading should be taken as negative/bearish for the EUR.
The Unemployment Rate is a measure of the percentage of the total labor force that is unemployed but actively seeking employment and willing to work in the Euro-zone. A high percentage indicates weakness in the labor market.
A low percentage is a positive indicator for the labor market in the Euro-zone and should be taken as positive for the EUR.
The Italian Consumer Price Index (CPI) measures the changes in the price of goods
and services.
It is a key way to measure changes in purchasing trends and inflation in Italy.
A higher than expected reading should be taken as positive/bullish for the EUR,
(as the common way to fight inflation is raising rates, which may attract foreign investment) ,while a lower than expected reading should be taken as negative/bearish for the EUR.
This seasonally adjusted jobless rate is a percentage of the total workforce that is unemployed and actively seeking employment during the previous quarter. It is released quarterly, about 80 days after the quarter ends.
If the actual reading is lower than the forecast, it is positive for the euro, since Italy has the euro zone's third largest economy. The data tends to have a muted impact since there are several earlier indicators related to the euro zone labor market.
The Gross Domestic Product (GDP) is the broadest measure of economic activity
and is a key indicator for the economy's health. Canada releases fresh GDP data on a monthly basis.
The monthly percent changes in GDP shows the growth rate of the economy as a whole. A higher than expected reading should be taken as positive/bullish for the CAD,
while a lower than expected reading should be taken as negative/bearish for the CAD.
The S&P/Case-Shiller US National Home Price Index (HPI) Composite-20
examines changes in the value (selling prices) of real estate market in 20 regions across the US in the last year.
This report helps to analyze the strength of the US housing market, which helps to analysis the economy as a whole. A higher than expected reading should be taken as positive/bullish for the USD,
while a lower than expected reading should be taken as negative/bearish for the USD.
The Chicago Purchasing Managers Index determines the economic health of the manufacturing sector in Chicago region.
Any reading above 50 indicates expansion of the manufacturing sector,
while a reading below 50 indicates contraction. The Chicago PMI can be of some help in forecasting the US ISM and
usually has an impressive correlation with it. A higher than expected reading should be taken as positive/bullish for the USD,
while a lower than expected reading should be taken as negative/bearish for the USD.
The Consumer Confidence measures the level of consumer confidence in economic activity.
It is a leading indicator as it can predict the consumer spending, which is a major
part in the total economic activity. Higher readings point to higher consumer optimism.
A higher than expected reading should be taken as positive/bullish for the USD,
while a lower than expected reading should be taken as negative/bearish for the USD.
The Federal Open Market Committee (FOMC) Meeting Minutes are a detailed record of the committee's interest rate meeting held about two weeks earlier. The minutes provide detailed insights regarding the FOMC's stance on monetary policy, so Currency traders carefully comb them for clues regarding future interest rate shifts.
The ABC/Washington Post Consumer Confidence Index is a rolling average based on telephone interviews with 1,000 randomly selected adults over the previous four-week period.
The index is based on three core questions, which asks respondents to rate the condition of the national economy, the state of their personal finances and whether now is a good time to buy things. Margin of sampling error for the results of each of the component questions is plus or minus 3 percentage points.
A higher than expected reading should be taken as positive/bullish for the USD,
while a lower than expected reading should be taken as negative/bearish for the USD.
The AIG Manufacturing index measures the activity level of purchasing managers in the manufacturing sector.
Any reading above 50 indicates expansion, while a reading below 50 indicates contraction.
It gives an indication about the health of the manufacturing section and production growth in Australia.
Traders watch these surveys closely as purchasing managers usually have early access to data about their company’s performance, which can be a leading indicator of overall economic performance.
A higher than expected reading should be taken as positive/bullish for the AUD,
while a lower than expected reading should be taken as negative/bearish for the AUD.
The Gross Domestic Product (GDP) is the broadest measure of economic activity
and is a key indicator for the economy's health.
The quarterly percent changes in GDP shows the growth rate of the economy as a whole. A higher than expected reading should be taken as positive/bullish for the AUD,
while a lower than expected reading should be taken as negative/bearish for the AUD.
The ANZ Commodity Price Index measures the change in the selling price of exported commodities.
The commodities is a major part of New Zealand's economy, therefore rising commodity prices boost export income.
It also has affect of the New-Zealand's trade balance.
It is released monthly by ANZ, one of New Zealand's leading banking and financial services firms.
A higher than expected reading should be taken as positive/bullish for the NZD,
while a lower than expected reading should be taken as negative/bearish for the NZD.
The German Retail Sales is a monthly measurement of all goods sold by retailers based on a sampling of retail stores of different types and sizes in Germany excluding auto.
It is an important indicator of consumer spending and also correlated to consumer confidence. A higher than expected reading should be taken as positive/bullish for the EUR,
while a lower than expected reading should be taken as negative/bearish for the EUR.
The Commodity Prices measures the change in the selling price of exported commodities.
The commodities is a major part of Australian's economy, therefore rising commodity prices boost export income.
It also has affect of the Australia's trade balance.
A higher than expected reading should be taken as positive/bullish for the AUD,
while a lower than expected reading should be taken as negative/bearish for the AUD.
The Schweizerischer Verband für Materialwirtschaft und Einkauf (SVME) Purchasing Manager's Index (PMI) measures the activity level of purchasing managers in the manufacturing sector. Any reading above 50 indicates expansion,
while a reading below 50 indicates contraction.
It gives an indication about the health of the manufacturing section and production growth in Switzerland.
Traders watch these surveys closely as purchasing managers usually have early access to data about their company’s performance, which can be a leading indicator of overall economic performance.
A higher than expected reading should be taken as positive/bullish for the CHF,
while a lower than expected reading should be taken as negative/bearish for the CHF.
The Manufacturing Purchasing Manager's Index (PMI) measures the activity level of purchasing managers in the manufacturing sector. Any reading above 50 indicates expansion,
while a reading below 50 indicates contraction.
It gives an indication about the health of the manufacturing section and production growth in the Euro-zone.
Traders watch these surveys closely as purchasing managers usually have early access to data about their company’s performance, which can be a leading indicator of overall economic performance.
A higher than expected reading should be taken as positive/bullish for the EUR,
while a lower than expected reading should be taken as negative/bearish for the EUR.
The Chartered Institute of Purchasing and Supply (CIPS), Purchasing Managers' Index (PMI) measures the activity level of purchasing managers in the manufacturing sector. Any reading above 50 indicates expansion,
while a reading below 50 indicates contraction.
It gives an indication about the health of the manufacturing section and production growth in the UK.
Traders watch these surveys closely as purchasing managers usually have early access to data about their company’s performance, which can be a leading indicator of overall economic performance.
A higher than expected reading should be taken as positive/bullish for the GBP,
while a lower than expected reading should be taken as negative/bearish for the GBP.
The MBA Mortgage Applications is a weekly survey which measures the change in the number of new Mortgage Applications during a given week.
It provides information about the buyers in the housing market in the US.
A higher than expected reading should be taken as positive/bullish for the USD,
while a lower than expected reading should be taken as negative/bearish for the USD.
This monthly report is an early data which indicates the change in the number of corporate job cuts
announced by employers. Therefore it gives us an indication about the overall labor conditions.
A higher than expected reading should be taken as negative/bearish for the USD,
while a lower than expected reading should be taken as positive/bullish for the USD.
The ADP National Employment Report is a measure of the monthly change of nonfarm private employment, based on a subset of aggregated and anonymous payroll data that represents approximately 400,000 U.S. business clients.
This release, 2 days before the government-released employment data ,
is a good predictive to the government's non-farm payrolls data.
The change in this indicator can be very volatile.
A higher than expected reading should be taken as positive/bullish for the USD,
while a lower than expected reading should be taken as negative/bearish for the USD.
The Institute of Supply Management (ISM) Manufacturing Index tracks the amount of manufacturing activity that occurred in the previous month. This data is considered a very important and trusted economic measure.
If the index has a value below 50, due to a decrease in activity, it tends to indicate an economic recession, especially if the trend continues over several months.
A value substantially above 50 likely indicates a time of economic growth. The ISM index is the result of a monthly survey of over 400 companies in 20 industries throughout the 50 states.
The ISM's leading quality has been proven over time.
During a recession, the ISM's bottom may precede the turning point for the economic cycle
by some months.
A higher than expected reading should be taken as positive/bullish for the USD,
while a lower than expected reading should be taken as negative/bearish for the USD.
The Construction Spending index measures the change in the total amount of spending
in the US on construction
Spending measurement is based on the completion of buildings and projects.
So the figures represent completions.
The monthly changes are both subject to large revisions and volatile, therefore this report rarely has any market impact.
A higher than expected reading should be taken as positive/bullish for the USD,
while a lower than expected reading should be taken as negative/bearish for the USD.
The Institute of Supply Management (ISM) Manufacturing Prices represents business sentiment regarding future inflation, where a higher figure indicates stronger expectations of inflation.
The ISM index is the result of a monthly survey of over 400 companies in 20 industries throughout the 50 states.
It's a leading indicator of consumer inflation.
A higher than expected reading should be taken as positive/bullish for the USD,
while a lower than expected reading should be taken as negative/bearish for the USD.
The Energy Information Administration's (EIA) Crude Oil Inventories measures the weekly increase in barrels of commercial crude oil held in inventory by US firms. The level of inventories influences the price of petroleum products, which can have an impact on inflation and other economic forces.
The Total Vehicle Sales measures the annualized number of new vehicles sold domestically in the given month.
It is an important indicator of consumer spending and also correlated to consumer confidence.
A higher than expected reading should be taken as positive/bullish for the USD,
while a lower than expected reading should be taken as negative/bearish for the USD.
The Monetary Base measures the worth of all currency and liquid cash assets held by the public.
The money supply is considered an important indicator of inflation,
as monetary expansion adds pressure to the exchange rates.
The Trade Balance index measures the difference in worth between exported and imported goods (exports minus imports).
This is the largest component of a country's balance of payments.
Export data can give reflection on Australian growth.
Imports provide an indication of domestic demand.
Because foreigners must buy the domestic currency to pay for the nation's exports,
it may have sizable affect on the AUD.
A higher than expected reading should be taken as positive/bullish for the AUD,
while a lower than expected reading should be taken as negative/bearish for the AUD.
The Gross Domestic Product (GDP) is the broadest measure of economic activity
and is a key indicator for the economy's health.
The quarterly percent changes in GDP shows the growth rate of the economy as a whole. A higher than expected reading should be taken as positive/bullish for the CHF,
while a lower than expected reading should be taken as negative/bearish for the CHF.
Nationwide Housing Price Index measures the monthly change in the average price for a house with mortgage, backed by Nationwide, in the UK.
It serves as a leading indicator of the housing market condition.
A higher than expected reading should be taken as positive/bullish for the GBP,
while a lower than expected reading should be taken as negative/bearish for the GBP.
The Retail Sales measures the change in sales of all goods sold by retailers based on a sampling of retail stores of different types and sizes in Switzerland.
It is an important indicator of consumer spending and also correlated to consumer confidence and considered as a pace indicator of the Swiss economy.
A higher than expected reading should be taken as positive/bullish for the CHF,
while a lower than expected reading should be taken as negative/bearish for the CHF.
The Chartered Institute of Purchasing and Supply (CIPS) Construction Purchasing Manager's Index (PMI)
measures the activity level of purchasing managers in the construction industry. Any reading above 50 indicates expansion of the manufacturing in the construction industry,
while a reading below 50 indicates contraction. .
It gives an indication about the health of the construction section in the UK.
Traders watch these surveys closely as purchasing managers usually have early access to data about their company’s performance, which can be a leading indicator of overall economic performance.
A higher than expected reading should be taken as positive/bullish for the GBP,
while a lower than expected reading should be taken as negative/bearish for the GBP.
The Producer Price Index (PPI) is an inflationary indicator that measures the average change in selling prices received by domestic producers of goods and services.
The PPI measures price change from the perspective of the seller.
The PPI looks at three areas of production: industry-based, commodity-based, and stage-of-processing-based companies.
When producers pay more for goods and services, they are likely to pass the higher costs to the consumer, so PPI is thought to be a leading indicator of consumer inflation.
A higher than expected reading should be taken as positive/bullish for the EUR,
while a lower than expected reading should be taken as negative/bearish for the EUR.
The Gross Domestic Product (GDP) is the broadest measure of economic activity
and is a key indicator for the economy's health.
The quarterly percent changes in GDP shows the growth rate of the economy as a whole. A higher than expected reading should be taken as positive/bullish for the EUR,
while a lower than expected reading should be taken as negative/bearish for the EUR.
The European Central Bank (ECB) decision on short term interest rate.
The decision on where to set interest rates depends mostly on growth outlook and inflation.
The primary objective of the central bank is to achieve price stability.
High interest rates attract foreigners looking for the best "risk-free" return on their money, which can dramatically increases demand for the nation's currency.
A higher than expected rate is positive/bullish for the EUR,
while a lower than expected rate is negative/bearish for the EUR.
The European Central Bank holds this monthly press conference about 45 minutes after the Minimum Bid Rate is announced. It is about an hour long and has two parts: First, a prepared statement is read; then the conference is opened to press questions. The questions often lead to unscripted answers that trigger market volatility.
The press conference, which is broadcasted on the ECB website, is the ECB's primary method for communicating with investors about monetary policy. It covers in detail the factors that affected the most recent interest rate and other policy decisions, such as the overall economic outlook and inflation. Most importantly, it often provides clues regarding future monetary policy. If the statement is more hawkish than expected, that is usually good for the euro.
The Initial Jobless Claims is a seasonally adjusted measure of the number of people who file for unemployment benefits for the first time during the given week.
This data is collected by the Department of Labor, and published as a weekly report.
The number of jobless claims is used as a measure of the health of the job market, as a series of increases indicates that there are fewer people being hired.
On a week-to-week basis, claims are quite volatile.
Usually, a move of at least 35K in claims, is required to signal a meaningful change in job growth.
A higher than expected reading should be taken as negative/bearish for the USD,
while a lower than expected reading should be taken as positive/bullish for the USD.
The Nonfarm Productivity measures the annualized change in the average productivity level of US workers when producing goods and services, excluding the farming sector.
The Nonfarm Productivity is calculated by dividing the GDP by the number of hours worked.
Growth in Nonfarm Productivity is usually seen as a sign of a healthy economy.
A drop in Labor Productivity indicates inflation - since it's equivalent to a rise in wages.
It can be quite volatile.
A higher than expected reading should be taken as positive/bullish for the USD,
while a lower than expected reading should be taken as negative/bearish for the USD.
The Unit Labor Cost measures the change in the total cost of employing labor.
The Unit Labor Cost figure gives us a good indication of trends in inflation and production costs during the given quarter.
A higher than expected reading should be taken as positive/bullish for the USD,
while a lower than expected reading should be taken as negative/bearish for the USD.
NAR's Pending Home Sales Index (PHSI) measures change in housing contract activity.
It is designed to be a leading indicator of housing activity.
It is based on signed real estate contracts for existing single-family homes, condos and co-ops.
A signed contract is not counted as a sale until the transaction closes.
The index is not including new construction in it's count.
A higher than expected reading should be taken as positive/bullish for the USD,
while a lower than expected reading should be taken as negative/bearish for the USD.
The Factory Orders measures the change in dollar level of new factory orders for both durable and non-durable goods.
It consists of the earlier announced durable goods orders plus non durable goods orders.
This is why this report is very predictable.
A revision to the previous durable orders data is usually made with releasing the Factory Orders data.
A higher than expected reading should be taken as positive/bullish for the USD,
while a lower than expected reading should be taken as negative/bearish for the USD.
The EIA (Energy Information Administration) Natural Gas Storage measures the change in the number of cubic feet of natural gas held in underground storage during the past week.
The Australian Industry Group - PricewaterhouseCoopers Australian Performance of Manufacturing Index (Australian PSI®) is a seasonally adjusted national composite index based on the diffusion indices for production, new orders, deliveries, inventories and employment with varying weights. Results are based on the responses of around 200 companies.
If the notes go above 50.0, this indicates industry expansion, below indicates industry contraction.
A higher than expected reading should be taken as positive/bullish for the AUD,
while a lower than expected reading should be taken as negative/bearish for the AUD.
The Capital Spending measures the change in the capital expenditures made by companies. It's a leading indicator of business conditions and economic health.
The number measures the change from the reported quarter to the same quarter a year earlier.
A higher than expected reading should be taken as positive/bullish for the JPY,
while a lower than expected reading should be taken as negative/bearish for the JPY.
The Consumer Price Index (CPI) measures the changes in the price of goods
and services.
It is a key way to measure changes in purchasing trends and inflation in Switzerland.
A higher than expected reading should be taken as positive/bullish for the CHF,
(as the common way to fight inflation is raising rates, which may attract foreign investment) ,while a lower than expected reading should be taken as negative/bearish for the CHF.
The Services Purchasing Managers' Index (PMI) released by the Markit
measures the activity level of purchasing managers in the services sector. Any reading above 50 indicates expansion,
while a reading below 50 indicates contraction.
It gives an indication about the health of the services industry in the Euro-zone.
Traders watch these surveys closely as purchasing managers usually have early access to data about their company’s performance, which can be a leading indicator of overall economic performance.
A higher than expected reading should be taken as positive/bullish for the EUR,
while a lower than expected reading should be taken as negative/bearish for the EUR.
The Chartered Institute of Purchasing and Supply (CIPS) Services Purchasing Manager's Index (PMI) service
measures the activity level of purchasing managers in the services sector. Any reading above 50 indicates expansion,
while a reading below 50 indicates contraction.
It gives an indication about the health of the services industry in the UK.
Traders watch these surveys closely as purchasing managers usually have early access to data about their company’s performance, which can be a leading indicator of overall economic performance.
A higher than expected reading should be taken as positive/bullish for the GBP,
while a lower than expected reading should be taken as negative/bearish for the GBP.
The Retail Sales is a monthly measurement of all goods sold by retailers based on a sampling of retail stores of different types and sizes in the Euro-zone.
It is an important indicator of consumer spending and also correlated to consumer confidence and considered as a pace indicator of the Euro-zone's economy .
A higher than expected reading should be taken as positive/bullish for the EUR,
while a lower than expected reading should be taken as negative/bearish for the EUR.
The Nonfarm Payrolls measures the change in the number of employed people during the last month of all non-farming businesses.
The total non-farm payroll accounts for approximately 80% of the workers who produce the entire gross domestic product of the United States.
It is the single most important piece of data contained in the employment report, which considered to offer the best overview of the economy.
The monthly changes and the revisions in payrolls can be quite volatile.
A higher than expected reading should be taken as positive/bullish for the USD,
while a lower than expected reading should be taken as negative/bearish for the USD.
The Unemployment Rate is a measure of the percentage of the total labor force that is unemployed but actively seeking employment and willing to work in the US.
A high percentage indicates weakness in the labor market.
A low percentage is a positive indicator for the labor market in the US and should be taken as positive for the USD.
The Average Hourly Earnings measures the change in the average basic hourly rate for major industries.
Therefore it measures the labor cost inflation.
The average earnings figure gives us a good indication of personal income growth during the given month.
A higher than expected reading should be taken as positive/bullish for the USD,
while a lower than expected reading should be taken as negative/bearish for the USD.
The Average Weekly Hours (also known as Average Workweek)
is the average number of hours worked by employees on nonfarm payrolls.
It is an important determinant of both industrial production and personal income in the given month.
It can be quite volatile.
A higher than expected reading should be taken as positive/bullish for the USD,
while a lower than expected reading should be taken as negative/bearish for the USD.
The Institute of Supply Management (ISM) Non-Manufacturing Index (also known as ISM Services) tracks the amount of non-manufacturing activity that occurred in the previous month.
Any reading above 50 indicates expansion,
while a reading below 50 indicates contraction.
It has much less affect on the GDP than the ISM Manufacturing Index.
A higher than expected reading should be taken as positive/bullish for the USD,
while a lower than expected reading should be taken as negative/bearish for the USD.
