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.
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.