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Economic Indicators

Economic indicators can be anything, from the bits and pieces of financial and economic news, to the data published by different agencies on the statistics of government or private sector.

This data is regularly made public to help the common man keep track of the latest developments in the nation’s financial sector. Most benefited from these economic indicators are the market observers who are constantly keeping an eye on the overall economy and its effect on the market. This is the main reason why such indicators are consistently tracked by nearly everyone related to the financial markets in some way or another.

Also, this is the rationale behind the economic indicators containing great potential for creating levels and moving currency prices along with the whole markets, as so many people are expected to respond to the same data together.

Major Indicators

Industrial Production –

It is a measure of the variation in the manufacturing of the country’s industrial units and mines in addition to a measure of their business capability and their capacity utilization, which is the number of used accessible resources amongst the various industrial units and utilities.

Producer Price Index –

The Producer Price Index or PPI calculates the price variations in the industrialized sector. It determines the average variations in selling prices received by home manufacturers in the industrializing, mining, farming, and electric service business or trade for their production.
The PPIs mainly used for fiscal study are those for refined goods, intermediary goods, and unfinished goods.

Hard Goods Orders –

Durable or Hard Goods Orders calculates any new orders which have been placed with the home producers for instant and potential delivery of durable goods.

Retail Sales –

The retail sales report measures the entire revenue of retail houses from section on behalf of all range, class and type of industries in retail business all through the nation.
Retail sales contain both hard and soft commodities sold, and services and excise taxes accompanying the trade of commodities, not including the sales taxes.
The Gross Domestic Product –

Gross Domestic Product or (GDP) measures the total of all the merchandise and services created either by home or overseas companies, showing the speed at which a nation’s wealth and market is rising or falling.

(GDP) is regarded as the most extensive indicator of monetary productivity and development of a nation.

Housing Starts –

The Housing Starts report calculates the quantity of housing units which are being initiated into construction every month, where the initiation process is predefined as the start of an excavation for the groundwork of any residential structure.

To make full use of these economic indicators in the Forex market and trading world, you should always be aware as to when each economic indicator is due to be out in the markets. Keep track of all the release dates through a calendar or keeping in touch with the agencies which will be releasing these statistics or snippets for the public.

Also, keeping a record or a watchful eye on the release dates of these economic indicators will help you build a stronger decision whether to go forward or drop the position you were planning to go with by predicting the market movements based on gut feelings.


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