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Archive for category Forex Resources
What is Forex? Video
Sep 23
Here’s a introductory video on spot foreign exchange market.
The other types of US economic data that move FX rates are the Producer Indices and Consumer Indices. The Producer Price Index, Purchasing Manager Index and Industrial Production Index all give an indication of the cost of producing goods in the US. A rise in the indices is indicative of a rise in the cost of producing goods. Such an increase results in higher inflation which may cause the Federal Reserve to adjust interest rates.
Most of us are probably familiar with the Consumer Price Index, Consumer Confidence Index and Retail Sales Index. The Consumer Price Index (CPI) measures how much a standard basket of goods costs to consumers. A rise in the CPI is associated with increased inflation. The Consumer Confidence Index (CCI) measures how confident consumers are in the US economy. A higher CCI is associated with an improving economy and hence a stronger US dollar. Finally, Retail Sales Index broadly measure consumer spending in goods and services. Higher retail sales would indicate confidence in the US economy as well.
I’ve listed a number of websites below where you can get a calendar listing the release of economic data for the weeks and months ahead.
1. http://www.bloomberg.com/markets/ecalendar/index.html
Other factors affecting FX rates movements are US economic data such as the non-farm payroll report and employment report. These reports are released on the first Friday of each month and details the number of jobs created outside the farming area as well as the level of unemployment in the US economy. More jobs created plus lower unemployment points to a stronger US economy. This will inturn lead to a strengthening of the US dollar. The US Gross Domestic Production (GDP) report is another important benchmark. It gives an indication of the strength of the US economy by reporting on the amount of goods and service produced in the US every quarter. Growth in the GDP indicates a strong economy and hence a stronger US dollar.
Continued in Part II ..
