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Economic Indicators

Discussion in 'Forex Discussions' started by painofhell, Oct 8, 2015.

  1. painofhell

    painofhell Content Contributor

    Jun 24, 2015
    Likes Received:
    Economic indicators are pieces of data from important economic reports. Most of economic indicators are published by government agencies or select private groups. When taking multiple economic indicators into account for a country, traders can get a well rounded sense of a country's financial health.

    Major Economic Indicators
    • Employment Reports
    • Reports on Inflation and Money Supply
    • Interest Rate Statements
    • Retail Sales Reports
    • Gross Domestic Product
    Using Economic Indicators in Forex Trading
    Economic indicators can help you get a sense for the general economic trend of a country. For example, an employment report that shows more jobs being created month after month, can show that an economy is becoming more productive.

    While a falling retail sales report can be a warning that growth is starting to contract.

    Over the longer term, these trends can be the basis for a trade. You can invest in countries that are showing strength and trade against countries that are slowing down. This is the most basic element of fundamental analysis.

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