When business understanding and grasp the meaning
of information is extremely important. Information given should take
into account the time factor, accurately and bring the right decision
for investors. So you know the schedule announcement and understood the
concept of basic economic indicators yet?
Non Farm Payrolls:
The
unemployment rate is a measure of the labor market. An analysis of the
measure of the strength of the economy is the number one job is created.
This index indicates strong growth of the economy because the company
must create capacity to meet demand.
Schedule announced: the first Friday of the month at 8:30 am EST.
The decisions of the FOMC rate:
FOMC-Federal
open market committee: A committee set interest rate policy and credit
of the Federal Reserve System, the most important of monetary policy,
led by Chairman Alan Greenspan. FOMC meeting eight times a year, in the
meetings of the FOMC members will review monetary policy should change
how?
Federal Open Market established the
discount rate that the Federal Reserve to member banks for deposit in
the amount of debt overnight. Interest rates are set in during the FOMC
meeting of the regional banks and the Federal Reserve Board
Calendar published: 8 meetings per year. Last known date so please check on the economic calendar.
Trade balance:
The
trade balance measures the difference between the value of goods and
services that one country exports and the value of goods and services it
imports. The trade balance surplus if the value of exports over
imports, conversely, if the trade balance deficit if imports exceed
exports.
Schedule announced: generally
published around the middle of the 2nd month following the reporting
period. You should check the economic calendar each month.
CPI - Consumer Price Index
CPI
is a measure of inflation because it measures the price of a fixed
price of consumer goods. Higher prices are considered negative for one
economy, but because central banks typically respond to inflation by
increasing interest rates to monetary sometimes react positively in the
first reports of abuse found higher.
Measure the average change in prices of goods covered by the amount of the average consumer basket of goods and services fixed.
In
the U.S., the proportion of items in the basket of goods is 42%
residential, 18% food, 17% transportation, healthcare 6%, 6% jewelry,
entertainment 4%, other 7%.
CPI
is widely used to measure inflation, is an important indicator of the
impact of government policies. Increase in CPI inflation implies, is an
important indicator in the market and have the ability to change the
market, the larger increase in inflation expectations or trends appear
CPI increase will lead to incompatible Coupons and income and interest
will increase. Only the high inflation caused the change in the stock
market and will lead to changes in interest rates. High inflation effect
is difficult to determine the exchange rate, it leads to a decrease in
the exchange rate, the higher prices mean reduced competitiveness. High
inflation and interest rates lead to increased application of tighter
monetary policy.
Unlike
the other measures of inflation, only include goods produced in the
country, including CPI goods are imported. Analysts often focusing on
core CPI, this variation was accounted for 8 factors accounted for 16%
of the CPI basket (fruit, vegetables, gasoline, oil, natural gas,
mortgage interest, urban traffic and tobacco ). The calculation is done
for the CPI are calculated more accurately.
Schedule announced: monthly - about 13 days each month at 8:30 am EST
Retail sales:
The
retail sales index is a measure of the total amount of goods sold by
the example of the first retail stores. It is used as a measure of
consumer activity and confidence when selling higher numbers indicating
increased economic activity.
Schedule announced: monthly - about 11 days each month at 8:30 am EST.
Gross Domestic Product (GDP)
This
index measures the market value of goods and services produced in a
country, regardless of the nationality of the factors which owns the
resources. There are four main elements to the value of GDP are:
consumption, investment, government spending, net exports. The index is
published on a quarterly basis comparable reduction ratio% increase this
quarter compared with the previous quarter, this year compared to last
year. This index has an important influence on the market after being
released.