Trading The Economic Reports Like Non Farm Payroll Report Shocking Secrets
Economic Reports are important for all markets but they are a way of life for the currency traders as well as the futures and options traders. Each individual market has its own set of reports which the traders pay special attention. But there are some economic reports that are prime catalysts for almost all markets especially the currency, bonds and the stock markets that stand at the center of the financial universe.
Gross Domestic Product, the Consumer and the Producer Price Index, the monthly Employment Reports, the Federal Reserve's Beige Book and the Institute for Supply Management (ISM) are some of the important economic reports that you should be aware of as a trader. You simply cannot ignore these reports. These economic reports are considered to be important trend setters in different markets.
Now, you can know the date of release of these economic reports by looking at the Economic Calendar. By looking at the Economic Calendar, you can know these dates as it provides the listing of dates when these reports will be released. Each month, most of these reports are released by the different agencies that includes both public as well as private at fixed dates.
Not all reports are created equal. Some economic reports have more influence on the market than others. The most important reports that tend to move the markets a lot are the employment report, the Producer Price Index (PPI), the Consumer Price Index (CPI) and the Federal Open Market Committee Meeting Minutes.
The US Department of Labor's Non Farm Payroll (NFP) Employment Report is considered to be a major market moving report. It is released on the first Friday of each month at 8:30 AM EST. You should try to avoid trading at this time. However, there are many currency traders who now specialize in trading the NFP Report.
These types of reports can also start a news trend in the market that might last for quite sometime! Now as said before, the market reaction is dependent on how muc surprise there is in the report. If there is no element of unexpected in the report, the market may react mildly. But if there is a big surprise in the report that the market did not anticipate, markets can be volatile for hours or even days before the importance of the surprise is digested by the market.
NFP Report has become important in the last few years keeping in view the slow economic growth. Now, as the economy shifts gear from slow growth to high growth the state of employment figures can become highly important for the economy. This report is used by the traders, investors and Wall Street Analyst to anticipate any interest rate changes in the economy. In the end, it is the interest rates that stand at the center of the financial universe!
Article Source: FxTradingStock.com
About the Author
Mr. Ahmad Hassam has done Masters from Harvard University. Download this 70+ page Forex-4 Pack Forex Swing Trading Training Kit FREE. Get this 1 Minute Forex Trading System that makes money instantly FREE.
by: Ahmad Hassam
Total views: 77
Word Count: 484
Date: Sat, 6 Mar 2010
Publish/Share this article
To use this article on your site click here to get the HTML code
Rating: Not yet rated
Login to vote
Related Articles
Tips On How To Profit In Virtual Stock TradingLet's Choose A Forex Broker.
Some Tips On How To Forex Trade Online To Know
Stay Away From Requotes In Forex.
Helpful tips for Finding the right Forex Trading Program
Forex Currency Trading Software program -- Pick the Proper 1!
Forex Trading Strategies - What To Do When You Loose
Currency exchange Robot Trading Systems - Get the Full Benefit!
