American economic indicators

To survive as an FX trader for the rest of your life, you need to have a firm grasp of US economic indicators. The reason is that the economic indicators of the United States have a great influence on any currency pair, which is why they are called the key currency. I tried to summarize what kind of indicators there are and the importance in a list. American indicators are almost every day. So you don’t have to keep track of everything. Pay attention to the ones that are of high importance.

Unemployment rate (Importance: High)

It may be the most influential in the Forex market. A monthly announcement will affect all currencies.

FOMC (Federal Open Market Committee) (Importance: High)

Abbreviation for Federal Open Market Committee. It is a committee that decides the policy of open market operations (adjusting the supply and demand of funds of financial institutions through government bond buying operations, etc.), which is one of the monetary policies. It will be held at any time as needed. This announcement could move the chart significantly as it announces monetary policy.

Construction spending (importance: low)

Economic statistics that summarize the costs of construction companies for the construction of housing, commercial facilities, and public facilities that have started construction in the United States. The Department of Commerce announces the month before the first business day of every month. There is not much impact on the market.

ISM Manufacturing Index (Importance: Medium)

Abbreviation for Institute for Supply Management, an index that shows the business sentiment of the American manufacturing industry published by the Institute for Supply Management (ISM). We conduct questionnaires on items such as “new orders, production, employment, arrival status, and inventory” for manufacturing companies, and calculate the index from the response results. However, although the market price does not move significantly with this index, you can get a feel for the business situation.

University of Michigan Consumer Attitude Index (Importance: Medium)

An economic indicator of American consumer sentiment, published monthly by the University of Michigan Survey Research Center, also known as the University of Michigan Confidence Index. Since the number of people surveyed is small, the characteristic index is that the monthly fluctuation range is large.

Chicago Purchasing Managers Association Business Index (Importance: Medium)

The Chicago Purchasing Managers’ Index (Chicago PMI) is an indicator of business sentiment in the manufacturing sector in the Chicago area (Illinois, Iowa, Indiana, Michigan, Wisconsin). Measurements above 50 indicate economic expansion in the manufacturing sector, and below 50 indicate recession.

Private consumption expenditure (importance: high)

An economic indicator published by the Department of Commerce that aggregates goods and services consumed by US households, the official name is Personal Consumption Expenditures, which is abbreviated as PCE. It is recognized as a leading indicator of GDP. This index moves the market price moderately.

Personal income (importance: medium)

It is an economic indicator published by the Bureau of Economic Analysis of the Ministry of Commerce, which surveys personal income and consumption in the United States. It means “income actually received by an individual” by deducting social insurance premiums from income such as salary and rental income.

Quarterly Employment Cost Index (Importance: Medium)

An index showing the actual employment costs borne by a company, including wages / salaries and expenses related to employment other than wages such as welfare expenses. It is an index that the US Department of Labor Statistics Bureau (BLS) aggregates on a quarterly basis and announces around the end of the following month of the measurement period, so be careful as it may move the market price in some cases.

Home Sales Hold Index (Importance: Medium)

The Home Sales Hold Index is an index of properties that have a sales contract but have not yet been finally delivered. In the United States, there is usually a one- to two-month time lag between the conclusion of a pre-owned home sale and the final delivery, and the index is a leading indicator of the number of pre-owned homes sold, which is attracting more attention.

Number of continuous unemployment insurance recipients (importance: medium)

The number of US unemployment insurance renewal applications is an index that measures the number of people who continue to apply for unemployment insurance after a new application, and is announced by the Ministry of Labor along with the number of new unemployment insurance applications.

Number of new unemployment insurance applications (importance: medium)

The number of unemployed people applying for unemployment insurance benefits for the first time will be aggregated and announced with seasonal adjustment. It is said to react sensitively to economic trends and is considered as a leading economic index.

Quarterly Real Gross Domestic Product (GDP) (Importance: High)

Gross Domestic Product is announced by the Bureau of Economic Analysis of the Ministry of Commerce of the United States, and is the total amount of goods and services produced in Japan, which represents the scale of the economy. It is related to the economic growth rate and may move the market significantly.

Orders for durable goods (importance: low)

One of the economic indicators that aggregates the amount of new orders for durable goods of companies in Japan. Durable goods refer to consumer goods such as automobiles, furniture, and aircraft.

MBA Mortgage Application Index (Importance: Low)

An index of the number of individual mortgage applications released every Wednesday by The Mortgage Bankers Association. We will announce the survey results of fixed interest rate, floating interest rate, new purchase, refinancing of loan.

ADP Employment Statistics (Importance: High)

Statistics developed to predict the number of non-farm payrolls across the United States using data from Automatic Data Processing (ADP), a leading US payroll service. It has a great influence on the market price.

Service Department Purchasing Managers Index (Importance: Low)

It is an economic index compiled by Markit and is also called “PMI”. We will conduct a survey of purchasing personnel in the manufacturing and service industries.

New orders for manufacturing industry (importance: low)

It is an economic indicator that shows the value of new orders in the manufacturing industry, and new orders, shipments, backlogs, inventories, etc. are announced at the same time. It can be said to be an indicator of business sentiment in the manufacturing industry.

Federal Reserve Board (FRB) Chairman Press Conference (Important: High)

At a press conference by the chairman of the Federal Reserve Board (FRB), there is some announcement about interest rate policy, so it is very likely that it will affect the market.

Wholesale Price Index (Importance: Low)

The wholesale price index (producer price index PPI) released by the Ministry of Labor is an index of fluctuations in prices on the seller side of goods and services purchased by individuals. By understanding the price trends of the countries targeted for announcement, it will be a material for forecasting business sentiment, inflation rate, and consumption trends.

Consumer Price Index (Importance: High)

The Consumer Price Index is a monthly statistic released by the Labor Statistics Bureau of the US Department of Labor, and is a statistical index for grasping the movement of prices of goods and services that consumers purchase. It is often abbreviated as CPI.

Monthly fiscal balance (importance: low)

The monthly fiscal balance announced by the Ministry of Finance is the amount of fiscal revenue minus fiscal expenditure. The higher the number, the easier it is to buy the dollar.

New York Fed Manufacturing Index (Importance: Medium)

An economic indicator of the business sentiment of the manufacturing industry in the New York area released by the Federal Bank of New York, one of the federal banks. It is used as a leading indicator for future economic trends.

Retail sales (importance: high)

This is an economic indicator related to the economy based on a sample survey of monthly sales in the retail and service industries such as department stores and supermarkets. The market price is moved moderately with an index that clearly shows the degree of consumption.

Import and export price index (importance: medium)

Import price statistics released monthly by the Ministry of Labor. Import prices are a hot indicator because they affect consumer prices through wholesale prices. The Export Price Index is used to keep track of trends in the Producer price index. A rise in the export price index is said to lead to a decline in demand, and a rise in the number makes it easier for the dollar to sell.

Equipment utilization rate (importance: low)

Ratio of production to capacity (including factories, coal mines and utilities). Facility utilization shows the growth and demand of the economy as a whole and is seen as a leading indicator of the Consumer Price Index (CPI).

Mining and industrial production (importance: low)

Mining and industrial production, announced by the Federal Reserve Board, is an index of production trends in the mining and industrial sector. You can grasp the business conditions of the industry.

Equipment utilization rate (importance: low)

The ratio of actual production to the production capacity of manufacturing, mining, and public works (electricity and gas). It is regarded as important as a leading indicator of capital investment and inflation, and it is expected that investment will become more active when it exceeds 80%.

NAHB Housing Market Index (Importance: Medium)

NAHB (National Association of Home Builders) is an economic indicator that shows the business sentiment of real estate agents (home builders) released every month.

Investment in securities in the United States (importance: medium)

The securities investment in the United States announced by the Ministry of Finance refers to the amount of funds that have flowed in from overseas to invest in US securities (stocks, government bonds, corporate bonds, etc.).

Philadelphia Federated Manufacturing Index (Importance: Medium)

It is an economic indicator related to the economy that shows the business sentiment and economic activity of the manufacturing industry in the Philadelphia region. If the number is higher than last time, the dollar will be easier to buy.

Richmond Fed Manufacturing Index (Importance: Medium)

The Richmond Fed Manufacturing Index, published by the Richmond Fed, is an economic indicator of business sentiment in the manufacturing industry in its jurisdiction (such as Virginia and North Carolina). If the number is higher than last time, the dollar will be easier to buy.