Economic Calendar
Understanding what is happening in the economy can help traders and investors make educated decisions as to what may happen in the market they are trading in. It is important to note that fundamental economic indicators are just estimates and are subject to constant revisions and those revisions can affect the market you are trading in too.
As a forex trader it, is important to understand how each indicator affects either unemployment and or inflation.We will try as much as we can to discuss each of the economic reports below as they affect the various stock, options,futures and forex traders.
| Economic Report | Release Date |
|---|---|
| Business Inventories/ Sales | 13th -17th for previous 2 months |
| Car Sales | 13th, 23rd of same month |
| Construction Spending | 1st business day for previous 2 months |
| Consumer Price Index (CPI) |
15th – 21st of following month |
| Durable Goods Orders | 22nd – 28th of following month |
| Empoyment Report ** | 1st -7th of following month ( usually 1st friday) |
| Factory Orders | 30th – 6th for 2 prior months |
| GNP ** | 21st – 30th of following month |
| Housing stats /Building permits | 16th – 20th of following month |
| Index of Leading Indicators ** | Last business day of following month |
| Industrial Production/ Capacity Utilisation | 14th – 17th of following month |
| Merchandise Trade Deficit | 15th – 17th for previous months |
| New Homes Sales | 28th – 4th for previous 2 months |
| Personal Income/Consumer Spending ** | 22nd – 31st following month |
| Producer Price Index ** | 9th -16th of following month |
| Purchasing Managers’ Index | 1st business day of following month |
| Retail Sales | 11th – 14th of following month |
The rule of thumb when using economic indicators is based on the Phillips curve. Basically as unemployment drops, inflation tends to increase and vice versa. The trader is trying to figure out which is rising, unemployment or inflation.
It is important to interpret what is happening with each currency you are trading in especially if you are holding long term positions.Note too that each and every currency you are trading is also affected by this and also their own countries reports. That is the reason why just because the dollar is strong to the Canadian does not automatically mean that it is strong the Yen too.
We shall discuss what each and every indicator above means to each individual trader later in this series.
[...] report, economic reports, inflation, ppi, producer price indexWe have already discussed the economic reports release dates and now we shall endevour to go into more detail of the usefulness of each economic report to [...]
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[...] 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 [...]
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