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Forex Data Guide Part 1

Here is a list of guides that will help you interpret, and analyze, the many different kinds of data for Forex.

The huge factors in trading: The value of government events, and economic data releases, will rely on the current focus of the market. The focus of the market often changes so it is wise to keep one's eyes open to the factors of the market at any given moment.

The top factors that have a major impact on the market, on a regular basis: > FOMC meetings > US trade balance > ECB decisions rate > US retail sales > US employment data > US Federal Reverse Chairman's testimony > US GDP > US Consumer Price Index > Japan Tankan Index

Data Guides:

1) Beige Book: The Federal Reserve Bank is gathering anecdotal data on the current economic circumstances in its district, with the help of the reports from branch directors, banks, and their interviews with businessmen, market experts and economists (and many other sources). This is called the Beige Book: in here is summarized information by the sector and district.

The reports are used by the Fed, along with some other indicators, to identify the interest rate, and policy, at the FOMC meetings. The meetings are often held two weeks after the release of the Beige Book. 2) Capital Flows: This is released every month by the US Treasury; this is a report based on the net capital flows toward the USA. This consists of stocks and bonds. This also differentiates between the official inflows, and the private inflows, through the central banks.

The descent in the inflows suggest that it oversees the confidence in the US. There will be individual concern when the capital inflows are said to be lower than the US monthly current account deficit. This will increase the dependency of the dollar on a short-term inflow of capital. A weak level of inflow may weaken the dollar.

3) Consumer Price Index: This is the index that measures the price changes from a representative basket of goods and services; examples of this are food, housing, energy, transportation, clothing, education, entertainment and medical care. This is also known as the cost-of-living index.

4) Durable Goods Orders: This is a government index that evaluates the level of the orders that are placed at US factories. This report gives us the information on the strength of the demand for the US manufactured goods. This will indicate to the investors what to expect from the sector of manufacturing, as a major component of the economy.