There is a time for work
and a time for earn

Сonvenient trading
account management

Optimal conditions
in the financial markets

Have some question left?
Ask the customer service department managers

previous arrow
next arrow
Slider

 

The main macroeconomic indicators in the developed countries are similar to each other and are calculated by similar methods. Therefore, in order to be conversant in terms and successfully use them in the analysis of the financial markets, it is sufficient to consider them in terms of one country. In this section, we offer you the background information on the main macroeconomic indicators of the USA as the most powerful economy in the world.

 

Gross Domestic Product: (GDP) 

Indications: The total market value of all domestically produced goods and services in all sectors of the economy. In fact, the main indicator of the economic situation, including data of other indices – manufacturing, construction, personal income and spending, etc.

Market impact: Has very strong influence on the financial markets, especially on the value of the dollar on the forex market, as well as monetary and economic policy of the United States. The indicator  directly correlates with the rate of USD, prices of US stocks and US stock indices values.

Publication: Quarterly, 3 or 4 week of the month following the end of the quarter. Then the values ​​are reviewed.

Data Source: The Census Bureau of the Department of Commerce .

 

Nonfarm Payrolls

Indications: The number of jobs created per month in all sectors except agriculture (employment in this sector is determined by the season).

impact on non-market activities: Has a strong influence on all the financial markets, especially foreign exchange. The increase in the index implies a sharp dollar rise. In addition, the empirically observed a clear influence of Nonfarm Payrolls GDP on the index values growth ​​of 200, 000 units per month implies growth of GDP for 3%. The date of Nonfarm data release  usually corresponds to the trader payment day.

Publication: Monthly, on the last Friday of the month.

Data Source: United States Census Bureau .

Jobless Claims: 

Indications: Change in the number of applications for unemployment benefits for one week.

Market impact: Jobless Claims Index allows us to certainty assume the future value of one of the  key indicators of the US economy and financial markets  – Nonfarm Payrolls. Reducing the number of initial applications for benefits means an increase in the number of jobs in non-agricultural industries. A more accurate information on the level of jobless claims can be reached withthe Jobless Claims value  for 4 weeks.

Publication: Weekly on Thursdays.

Data Source: The Employment and Training Administration of the Department of Labor – published by the Administration of Employment and Training of the US Department of Labor.

 

Unemployment Rate:

Indications: The ratio of unemployed to the working-age population, expressed as a percentage.

Market impact: One of the key indicators, published simultaneously with the data on Nonfarm Payrolls. The decline in the unemployment rate usually gives a boost to the growth of the dollar in the foreign exchange market. Also, the indicator is used to determine the possible inflationary pressures on the economy. 

Publication: Monthly, on the last Friday of the month.

Data Source: United States Census Bureau .

 

Personal Income:

Indications: The total value of money and material benefits received by households. Wages, income from business, rents, bank deposits, securities, investment products, scholarships, allowances, pensions and other social benefits, income from the sale of real estate, property, agricultural products of creative, intelligent , manual labor, etc. are usually taken into account as  the sources of the funds and benefits.

Market impact: The indicator shows the possibilities for the rest, education, health maintenance, reflects the general welfare of society, therefore it is extremely important to assess the country’s economy as a whole. Personal Income indicator is in direct correlation with the level of consumption and personal expenses indicator (Personal Spending) and affects the GDP level  seasonally.

Publication: Monthly, after the 20th day of a month.

Data Source: Bureau of Economic Analysis: US Bureau of Economic Analysis. 

 

Personal Spending: 

Indications: Changes in  spending to meet the personal needs of the population, including large purchases (durable goods), small purchases (non-durable goods), services expences.

Market impact: Personal Spending Index is closely associated with the index of Retail Sales and Personal Income. The reduction of personal expenses is a general downturn in the economy.

Publication: Monthly, after the 20th day of a month.

Data Source: Bureau of Economic Analysis: US Bureau of Economic Analysis.

 

Existing Home Sales:

Indications: The dynamics of sales in the secondary real estate market.

Market impact: The level of home sales depends on the percentage of housing loans, as well as welfare and consumer confidence in the future. The growth of this index (adjusted for seasonal variations) means strengthening the economy and the likely strengthening of the dollar in the foreign exchange market.

Publication: Monthly, after the 20th day of a month.

Data Source: National Association of Realtors .

 

New Home Sales:

Indications: The dynamics of sales in the primary real estate market – the number of newly built private housing  sold and offered for sale during the reporting period.

Market impact: Taken into account to determine the general level of the economy and welfare of the population, however, tends to cause less strong market reaction than the data on existing home sales due to seasons and business cycles.

Publication: Monthly, at the beginning of each month.

Data Source: The Census in the Bureau of the Department of Commerce .

 

Durable Goods Orders: 

Indications: Data on the number of orders (purchases) of goods for a period of use of more than 3 years – cars, furniture, appliances and computer equipment, and so forth.

Market impact: The indicator reflects the confidence of the population in the future, and its willingness to major spending. The data used in the full report on the branches of industry and trade. The value of Durable Goods Orders forecasts global motion vector of the economy and the level of business confidence in the country. There are also variations of the indicator, which are excluded from the accounting orders for the defense industry (Durable goods orders excluding defence) and transfer orders (Durable goods orders excluding transportation).

Publication: Monthly, on the fourth week of the month.

Data Source: The Census in the Bureau of the Department of Commerce .

 

Consumer Credit 

Indications: Data on the amount of use of the public borrowed funds, including loans, credit cards, installment and so on.

Market impact: The growth consumer credit rate shows the optimism and great confidence in the future among the population and, in general, is a positive factor for the US economy and the US dollar exchange rate, stock index and the financial markets. However, an excessive increase in the number of loans may also indicate the emergence of another credit bubble and “overheating” of the economy. This report is included in the general data on consumer demand.

Publication: Monthly, on the fourth week of the month.

Data source: Federal Reserve System .

 

Treasure International Capital (TICS): Report on capital inflows 

Indication: Shows the level of capital inflows into the United States from other countries.

Market impact: positive TICS data contribute to the strengthening of  USD, US stocks and stock indices in the financial markets. The decline in capital inflows under 50 billion dollars usually entails a sharp downward trend on USD in the forex because of the apparent reduction in the share of dollar assets in Central banks  outside the US.

Publication: Monthly, on the 11th working day of the month following the reporting one. 

Data source: US Department of the Treasury.

 

Fed FOMC Meeting / interest rate:

Indications: After the analysis of the economy, the Fed determines monetary policy for the next period and adjusts interest rates: Federal Funds Rate and Discount Rate.

Market Impact: Changes in interest rates and the rhetoric of the Fed governor  Janet Yellen in particular , has a strong influence on the market, the price of US assets, indices and currencies in the forex market.

Publication: The meeting is held every six months, reports are published in 1-2 days.

Data source: Federal Reserve System (Final Minutes of the FOMC meeting).

Bolmax Managment. All Rights Reserved.

 
  • ASK THE MANAGER
    Fill in all required fields, please