Now the most currency exchange processes are carried out against the U.S. dollar that is why analysis of key indicators in the U.S. has great importance for traders. So let us start analyzing some of them.
Producer Price Index (PPI) estimates average prices price movement. These prices are defined by production at all fabrication stages. It does not include the import goods, services and taxes. Its dynamics during the certain period of time is traced followed but not a separate value. Often this index is called Wholesales Price Index. This name was initially given to it and till 1978 it was called (WPI).
Nonfarm Payrolls, Average Workweek, Average Hourly Earnings, Employment Cost Index. These indicators are used as the fundamental argument when determining the inflation rate and possible changes in
interest rates. For example, September the 2-nd a sharp decline of USD/CHF from 1.5350 to 1.4881was observed. It was reasoned by publishing of overestimated economic data for the second quarter of industrial labor rise from 1.3 percent to 0.6 percent and labor force cost from 3.8 percent to 4.5 percent, that is considered to bring inflation. Consumer Confidence (Mood of consumers). The review of households developed for an estimation of individual propensity to expenses. It is not used as a trading signal. Car Sales (Sale of cars). It is not used as a trading signal.
Balances
Trade Balance. It includes the data on export which provide guidance on competitiveness of the domestic producer and define an economy gain, describing internal consumption, but thus essentially lagging behind other
indicators of consumption.
Trade balance data may bring importance in forecasting the GDP value.
Constructing Indices
Constructing is one of the major elements of gross national products. Development of this branch is a sign of healthy economy. Owing to a series of the historical reasons, constructing makes especially significant element of economy for the USA. For this reason all stages of constructing are attentively traced and on each of them following indicators are represented: Housing Starts and Permits, New and Existing Home Sales, Construction Spending.
Constructing indicators are rather sensitive to level of interest rates as at constructing the role of credits is very important. Besides, this branch essentially depends on level of incomes of the population, therefore activity growth in constructing branch is possible only at good state of the economy. Thus there is a process of strengthening of national currency and growth of the share market. Recession in constructing can be one of the first disturbing signals of unsuccessful state of the economy, thus there is decline of currency and, probably, falling of the stock market. At the analysis of the given indicators it is necessary to consider seasonal recurrence in constructing.
The information is not appropriate every time, as change is either insignificant, or it is already considered by the market, and the indicator was considered only as an sign of the general background. It makes sense to comprehend any changes of opinions of other market participants. Only in such a way it is possible to get a so-called market sentiment, being the vital element of the analysis and the forecast. On modern conditions access to the information, its processing are high-speed processes, and the trader should itself be able to solve, which data to take into account, and what value to give them. And traders need to do it instantly.