The Most Important Economic Reports You Shouldn’t Miss

One of the most basic but essential things that traders do is anticipate economic reports. These market data not only influence the price trends of your stock or currency, they also affect the market sentiment.

However, these data come by the hundreds. There are so much economic reports about various sectors that it would actually be impossible for one trader to keep track of them all. So how do you know which ones are worth watching? We’re here to help. Below we’ve compiled the four most important economic reports that we think will help you the most in formulating your trading strategies..

Consumer Price Index (CPI)

The Consumer Price Index is a market data report that declares the weighted average of prices for a sector of goods and services. The CPI, in essence, is the most popular indicator that traders use to measure inflation and to determine the buying power of consumers.

Federal Reserve Announcements

America’s central bank, the Federal Reserve, is perhaps the most powerful central bank in the world. Headed by Janet Yellen, the Fed’s announcements, meetings, interest rate adjustments, and policy changes are all significant reports that have effects on the market. It is one of the most watched economic reports.

Nonfarm Payroll (NFP)

The NFP economic data reports the monthly total number of paid employees of the US. It is released every first Friday of the month and is called as such because this data does not include the numbers of government employees, farm employees, private household, and people who have jobs for nonprofit organizations. It is one of the most anticipated economic report as it supposed to gauge the general health of the US economy. In fact, it is considered as the single biggest market influencer both for the stock markets and the forex industry.

Producer Price Index (PPI)

This data measures the total amount of sales of sellers. The PPI indicates the wellbeing of the wholesale market. It is normally released a few days ahead of the CPI and is used as a predictor for it.

While many traders indeed include various economic reports into their trading strategies, it should be noted that these data must be used with caution. Depending on numerous factors such as what kind of trader you are and what your trading strategy is, the data must be used smartly.