Important Economic Data with Impact on Forex Markets

Important Economic Data with Impact on Forex Markets – Economic data released by the schedules are almost the same every day, here are the schedules by country:

* Australia – AUD – 5:30 am until 7:30 pm
* Japan – Yen – 6:30 am until 11:30 pm
* Switzerland – CHF – 13:30 am until 17:30 pm
* Germany, Italy, France (Europe) – Euro – 14:00 am until 18:00 pm
* United Kingdom – GBP – 14:00 am until 18:00 pm
* Canada – CAD – 19:00 am until 20:30 pm
* United States – USD – 19:30 am until 22:00 pm

The news release did not all have an impact on price movements, we will try to summarize some news that normally cause extreme movement in the release:

1. NFP (Non Farm Payroll) – This data shows the total number of salaries reported by U.S. Buearu of Labor Statistics, does not include civil servants and workers in agriculture. This data is expected to give a level of salary from 80% of workers in America. Non Farm Payroll is considered important because it can show the ups and downs and also predict the unemployment rate of GDP, but it will also be a consideration for determining the economic policies in times to come.
2. Interest Rate / Bank Rate – Increase in bank rate will usually cause effects that are good for the country’s currency-related, because with rising interest rates, investors are expected to be signed in to invest and it means the higher the demand for currency.
3. GDP (Gross Domestic Product) – GDP is the value of all goods and services produced by a country within a specified period, usually annual or per year. This data is very important because it will measure all aspects of a country, including government spending, the difference in expo and imports, and consumption. GDP measures the main indicator of economic health of countries, including the standard of living of its citizens. GDP is a negative value would indicate an economic slowdown, even perrtanda recession.
4. Retail Sales – This data shows the number of items sold at the retail level. This figure is very important because it will show the economic activities of society, the numbers continue to rise showed the economy vibrant, otherwise the numbers continue to fall will show a sluggish economy. These data will also be the basis of interest rate policy-making, tax, and so forth.
5. Home Sales – Sales of homes, both new and secondhand homes, will show the level of activity in the community. Purchase high house give their view that purchasing power is still high. This data will also be influential on other data, such as new building permits, home loans, mortgage, and so forth.
6. CPI (Consumer Price Index) – This data mengukut price change of goods and services consumed by the public, including transport costs, food prices and health costs. CPI figures are often used to identify the occurrence of inflation or deflation. Sharp increase in the number of successive time would indicate the presence of inflation, and vice versa showed a sharp decline in deflation.
7. PPI (Producer Price Index) – PPI data show changes in prices of goods and services from the manufacturer. This index will provide an economic perspective, such as the CPI, but from the point of manufacturer and seller.
8. PMI (Purchasing Managers’ Index) – Figures released will serve as a major indicator of manufacturing sector. This data will include the number of orders, supply, production levels, stock, and also employment. Figures below 50 would indicate kontaksi, and numbers above 50 would indicate an increase in the manufacturing sector.
9. Trade Balance – The difference of exports and imports of a country is also one of the important indicators of economic health. Large deficit will affect the state budget.
10. Inflation – rising inflation report will certainly be bad for the economy of a country, and the impact on the relevant country’s currency strength. The central bank usually will take immediate steps to halt rising inflation, the ideal level is usually targeted by central banks is about 2% to 3%.

But there are also some news that was released outside the hours mentioned above, but the frequency is very low. The speeches by high-ranking economies are also sometimes performed outside these hours. Economic officials from the Fed, ECB, BoE, and various other central banks, typically hold a press conference to clarify its policies, as well as giving his views on the state of the economy, in addition, they sometimes follow the conferences in other countries or attend a panel discussion, their claims often lead to optimism and pessimism among investors and the effect on currency movements.