Construction Spending : Economic Reports
The Construction Spending report must be one of the most underated economic reports and I have to admit, I have never bothered with it .Unless of course you are into construction and the construction labour market, it is of very little use to most traders.
The report measures construction spending in residential, nonresidential , and state and local government initiated during the past month. Residential and commercial sectors are probably the most important.
The construction spending report is importance because it makes up about 20% of the GNP economic report. Though it seems that it should be of paramount importance especially if it’s making up 20% of the GNP ,the truth of the matter is that since it comes nearly last in the economic calendar, the market has already reacted to some other 14 economic reports.
| If Construction Spending is Up | If Construction Spending is Down | |
|---|---|---|
| Dollar |
Uncertain
|
Uncertain
|
| Bonds |
Uncertain
|
Uncertain
|
| Stocks |
Uncertain
|
Uncertain
|
How Construction Report Affects Dollar Forex Trading
Because of how late this report comes out after some other 14 economic reports have come out,there is very little value added by this report. However it does serve as a good forecasting tool. For example ,consequtive good construction reports may indicate that the market is coming out of a slump.
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