What is the Beige Book?

What is the Beige Book?

The Beige Book is a qualitative report released eight times per year by the Federal Reserve. It summarizes economic conditions across twelve districts and informs market expectations ahead of FOMC meetings.

What the Report Covers

• Employment trends: Hiring strength and wage pressures.
• Consumer demand: Retail sales anecdotes by region.
• Price developments: Early signs of inflation or disinflation.
• Sector highlights: Manufacturing, housing, services, and agriculture updates.

How Traders Use It

• Context for data: Cross-check anecdotes with upcoming hard statistics.
• Detect momentum shifts: Repeated references to cooling demand may foreshadow dovish policy.
• Regional insights: Gain clues about industries affecting specific currency crosses.
• Monitor inflation tone: A hawkish price discussion can strengthen the U.S. dollar.

Practical Playbook

• Define context on higher timeframes, then execute on intraday charts.
• Wait for confirmation (acceptance, momentum, or confluence) before entry.
• Size positions conservatively and place stops at clear invalidation levels.
• Adapt to session dynamics; conditions shift between Asia, London, and New York.

Common Pitfalls

• Forcing trades without alignment across timeframe, structure, and catalyst.
• Ignoring spreads/slippage during news or thin liquidity.
• Moving stops or adding to losers instead of honoring the plan.

Illustrative Example

Build a simple playbook: identify bias, mark key zones/levels, define triggers and invalidation, and pre‑set targets for 2–3R. Journal results by session and setup to refine rules. Over time, consistency—not prediction—drives outcomes.

Practical Playbook

• Define context on higher timeframes, then execute on intraday charts.
• Wait for confirmation (acceptance, momentum, or confluence) before entry.
• Size positions conservatively and place stops at clear invalidation levels.
• Adapt to session dynamics; conditions shift between Asia, London, and New York.

Common Pitfalls

• Forcing trades without alignment across timeframe, structure, and catalyst.
• Ignoring spreads/slippage during news or thin liquidity.
• Moving stops or adding to losers instead of honoring the plan.

Illustrative Example

Build a simple playbook: identify bias, mark key zones/levels, define triggers and invalidation, and pre‑set targets for 2–3R. Journal results by session and setup to refine rules. Over time, consistency—not prediction—drives outcomes.