Many economic publications appear with regards to Forex trading on a daily basis, some of which are particularly monitored and reviewed by forex traders. According to their degree of relevance, they will influence more or less the evolution of the exchange rate.
These key indicators or publications are mainly focused on the U.S. economy due to the economic dominance of the latter. However, a number of economic indicators of major industrialized countries may also have a significant influence on the forex market.
The Beige Book is one of the most popular publications and the most anticipated. The Beige Book guides decisions including fixing the main policy rate U.S. (the "Fed Funds rate") and thus the conditions of short-term remuneration of USD. In general, the communication between the various central banks whether European, Japanese and Chinese are also closely monitored by stakeholders Forex.
GDP: For a national economy, growth is materialized by the extended real GDP per capita. Among the major economies, China is the country with the largest economic growth globally, followed by the United States at a lower level (around 3% per year). The euro zone rarely recorded growth above 2% per year. Sustained growth is supposed to promote the value of a currency. However, supply and demand in the currency market can counteract this development because of expectations of future growth, which may differ from current levels of growth recorded. Positive numbers will instead go in the direction of a valuation of foreign currency and vice versa.
The U.S. unemployment rate announced every first Friday of the month at 2:30 p.m. (French time) can also create sudden movements on the dollar and also, indirectly, on currencies such as the euro or sterling.
The IFO index is a monthly indicator of German economic situation while the ISM is an economic indicator (made by the private sector) among the most anticipated in the United States. The IFO index is calculated on a 100 and it is closely analyzed by the markets as it gives a clear indication of the evolution of the German economy and more generally of the euro. A positive IFO is a favorable development of the euro factor.The ISM index is an indicator that anticipate reversal cycles through close correlation with U.S. GDP growth.
Finally, the Consumer Confidence Index is a leading indicator of future consumer spending of U.S. households, and by extension, the future U.S. economic growth. When the index of consumer confidence falls on the rise, the trend is favorable to the U.S. dollar and instead unfavorable if the index spring down.