Indicators economic important to US
Non-Farm Payrolls-NFP (unemployment in US)
The NFP is probably in the top 3 of those indicators that more move to the market.
The NFP shows the number of jobs created in the economy in a given month (jobsoutside the Government sector and Agriculture). Is one of them best indicators of the strength of the market works, and as already know, the market labor always is followed as an important diagnosis of the economy in general.
A number strong indicates an economy strong, therefore is would expect an appreciation of the USD.
A weak number indicates a weak economy, a depreciation of the USD would therefore be expected.
This report is published the first Friday of each month.
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Rate of interest
As already it mentioned, the rates of interest are a measurement of the cost of themoney. Central banks use the rate of interest as a tool to meet its main objectives.
A increase in them rates of interest of US typically increases the demand of USD, investors sold its currency local for buy USD to take advantage of it improves in performance increasing its demand and by ende the value of the USD.
A cut in US interest rates typically decreases the demand for USD, investors sold USD to exchange them for other currencies that generate better yields, this increases the offer of USD, decreasing its value.
When not there is change in the rates of interest can be interpreted as both, feelingbullish or bearish depending on the circumstances. No change after a period whereit fell continuously, it is perceived as bass player and after a period of increases, as bullish sentiment.
This report is announced 8 times a year.
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Balance commercial
This indicator measures the exports and net imports of goods and services from US.This is the component flow commercial of the balance of payments, that measures the demand and offer of a country (as it explained above).
Is important highlight that US has a scale commercial negative with almost all the countries of the world.
The USD tends to appreciate in a number,
The USD tends to depreciate at a bad number,
This report is published every two months (mid month).
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Consumer Price Index (CPI)
It is an index that measures changes in the price of a basket of commodities of products and services (inflation). The aim of this indicator is to measure price changes, leaving out the changes in the quality of goods and services.
If the CPI increases, the purchasing power of a low currency, having a negative impact with the USD
If the CPI decreases, the purchasing power of the currency climbs, having a positiveimpact with the USD.
This report is commonly published the second week of each month.
There is another related indicator, the Core CPI, which measures the same thing butexcludes food and products related to energy, the more volatile components of the CPI.Therefore, it has more stability in the measurement of changes in prices.
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Consumer Confidence Index
The JRC is a survey of 5,000 consumers, how they
perceive the conditions of the economy, the business climate and what to expect in the future. It shows that so confident are consumers in a given month.
A good number of ICC indicates an economy in good state, affecting of way positive to the USD.
A bad ICC number indicates an economy in poor state, affecting in a negative way to the USD.
This report is published near the end of each month.
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Retail Sales
Retail sales are an indicator of consumer spending. It measures sales of retailers (including durable and non-durable goods), but excludes services (the biggest disadvantage of this indicator).
A good number indicates favorable conditions economic, therefore the USD tends to gain value.
A bad number indicates unfavorable economic conditions, therefore the USD tendsto lose value.
This report is published in the middle of each month.
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Gross Domestic Product (GDP)
Measures the amount of goods and services (production total) produced within thelimits territorial of US. The ADG includes: consumption, investments private, expenditure Government and exports less imports.
The component more important of this advertisement is the change (in GDP) of thenumber current of the month, against the same month of the year previous.
A good number indicates an economy strong, and the USD tends to appreciate is against other currencies.
A wrong number indicates an economy weak, and the USD tends to depreciate is against other currencies.
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