Major Economic Data Releases Most Often Traded Upon
As mentioned previously, the market reacts on almost a daily basis to the release of fresh economic data.
Although the U.S. Non-Farm Payrolls number is one of the most significant numbers that traders use for such short term strategies, other significant numbers commonly used by forex news traders might include:
- Interest Rates - the interest rates set by central banks exert an enormous influence on the pricing of currencies.
- Gross Domestic Product or GDP - regardless of the currency, this number makes up one of the most important numbers traders use to trade on.
- Employment Numbers - the level of employment in a country can indicate the overall strength in their respective economy, and numbers like the U.S. Non Farm Payrolls and the Unemployment Rate can move the market substantially.
- Inflation Numbers - Closely watched inflation numbers like CPI and PPI show the level of inflation in a country. They typically signal the monetary policy shifts that a country's central bank is likely to take.
- Trade Balance - Along with the current account data, the trade balance for a country can significantly impact the valuation of its currency.