Today we are looking at some further important economic indicators. These and the previous ones are indicators used in the USA - remember that you need to find out those used in other leading economies, depending on which currencies you are trading.
- Consumer Confidence Index (CCI). This is published on a monthly basis in the USA and is seen as one of the most accurate indicators of confidence. When consumers are more confident, and therefore spend more money, it is taken as a sign that the economy is in good shape with jobs on the increase.
- Changes in non-farm payrolls (NFP). This too is published on a monthly basis and is used to help government policy-makers to determine the current state of the economy and predict future levels of economic activity. It is a very big market mover.
- Trade Balance. This measures the difference between the value of goods and services that a country exports and those it imports. It is seen as an extremely big market mover.
- Housing starts. This tracks how many new single-family homes or other residential buildings were constructed in the course of the month. It is not a big market mover, but it is seen as an accurate predictor of trends in the economy.
- Employment Cost Index (ECI). This is produced on a quarterly basis and tracks movements in the costs of labor at all levels. It is quite an important market mover since it increasing wage pressures are thought to indicate increasing inflation.
Next time we will look at how these indicators should be used. You can learn a lot more about this if you are using the Easy-Forex trading platform, and a lot more about Forex generally by visiting http://www.bizwrite.co.uk/Forex/forexindex.co.uk