Advanced and professional traders use economic indicators to help guide their investment decisions. Changes in economic indicators can prompt an investor to re-arrange his or her portfolio positions. Economic indicators are released on a timely and predictable basis, and are used by traders around the world make investment decisions.
Studying U.S. Economic Indicators
The currency markets in the United States open at 8:20 a.m. Eastern Standard Time. Economic indicators are released at 8:30 a.m. Eastern Standard Time on designated days of the week. Economists use economic indicator data to judge the overall health of the United States, although foreign currency traders dont usually consider all of the indicators. There are certain economic variables that foreign currency traders will use to determine the direction of the domestic currency.
The monthly release of the industrial production figure is something that foreign currency traders pay close attention to. Industrial production is an industrial sector indicator and helps measure the strength of an economy by totaling the output of that nations mines, plants and utilities. Another indicator that is used by foreign currency traders is the durable goods orders.
The durable goods orders count products that are produced to exist for more than three years. An example of a durable good is a washing machine. If durable goods orders are up, it implies that the economy is healthy and consumers are spending money. This is a positive sign that the domestic currency is moving in an upward direction. Currency traders also tend to be interested in inflation indicators in order to gauge interest rate movement in an economy. Understanding pertinent economic indicators can help you judge the strength of the U.S. economy and make more informed investment decisions.
Related Content
Foreign Currency Exchange Rates
Advanced and professional traders use economic indicators to help guide their investment decisions. Changes in economic indicators can prompt an investor to re-arrange his or her portfolio positions. Economic indicators are released on a timely and...
Forex Tools
Foreign currency trading attracted billions of dollars from institutions and investors in the late '70s when world economies began to float their currencies. Since then, foreign currency trading has only increased, now totaling over a trillion dollars a...
Monetary Exchange Rate
The monetary exchange rate is the comparison of one country's currency with that of another. An interesting thing when it comes to currency exchange is that there is no longer a set standard for a particular country's currency to be valued by. It is...
Relative Strength
Relative strength is an indicator that compares the movement of a stock price over the previous year to a market index (like the S&P 500). Indicators are technical or fundamental measurements that securities analysts use to forecast the market's...
Virginia Mortgage Refinancing Rates
The current Virginia mortgage refinancing rates are typically provided by mortgage lenders over the telephone. However, there are some internet lending organizations that will publish their Virginia mortgage refinancing rates online. It is wise to...
South African Investment Opportunities
Looking to enrich yourself via exciting South African investment opportunities? Unfortunately, you are not alone in conceiving of the South African foreign exchange as a potential pot of gold. Hundreds of thousands of investors are rediscovering the...
Stochastics
Stochastics are very popular technical indicators because they are typically very accurate. If you just had a flashback to college calculus, don't worry, you can relax. Thanks to incredible advancements in stock charting software and stock charting...
Low Interest Mortgage Rates
Low interest mortgage rates generally come about when the economy slows. This is due to investors' speculation that the Federal Reserve will cut interest rates in the future to help improve the economy. It's a period of higher demand, which leads lenders...
S P Futures Trading
S P futures trading is a process through which investors speculate on the future price of the Standard & Poor's index otherwise known as the S P futures trading index. This index is a general average of the value of America's top companies, and is used...
Euro Currency
The Euro currency was created in order to make a more powerful currency against the United States dollar. The performance of the Euro currency has been gaining momentum ever since its introduction. Now more than ever, its place in the foreign currency...
