What is Economic Data?
Economic Data
Forex Trading Glossary
Quick Answer: Economic data includes official statistics on growth, inflation, labor markets, and sentiment that influence currency valuations.
What is Economic Data?
Economic data encompasses statistical releases that measure the health of an economy, such as employment, inflation, and output figures. These releases influence currency valuations by shaping expectations for growth and interest rates.
Major Data Categories
- Growth: GDP, industrial production, retail sales.
- Inflation: CPI, PCE, producer prices.
- Labor market: Employment reports and jobless claims.
- Sentiment: Consumer and business confidence surveys.
Data Hierarchy
Understand which releases matter most for the currency you trade. For example, CPI is crucial for USD because the Federal Reserve targets inflation.
Trading Economic Data
- Follow expectations: Markets react to surprises versus consensus.
- Mind revisions: Updated prior readings can be as important as the headline.
- Assess trends: One release rarely changes the narrative; watch multi-month direction.
- Blend with technicals: Use chart signals to structure trades around data.
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