An Economic Calendar is a tool that gives information related to economic events to be released. Such events have the potential to influence the market trend of the traded financial instruments. These events are classified in an order of importance as follows: Low, Medium, and High depending on their level of impact on the market. Identifying the level of importance, the date, and the time an economic event happens or is released can impact traders’ trading strategies, risk management, and decision making process.
Find below some Economic Variables and their meanings:
It measures changes in the price level of a market basket of consumer goods and services purchased by households.
It represents Consumer Price Index excluding volatile food and energy prices.
It represents an index of only goods’ prices, measured at the wholesale, or producer level. The higher the inflation is, the higher the interest rate should be. The higher the interest rate, the borrowing cost will increase will also increase therefore, investors will start buying more of the underlying currency.
It represents a monetary policy adopted by a central bank through which, the central bank purchases government securities from the market in order to lower interest rates and increase the money supply! The main purposes are to increase the money supply in the financial market through financial institutions to boost lending and liquidity. This measure is taken into consideration when the short-term interest rate is zero or close to zero and, the central bank doesn’t want to print new banknotes.
It represents an indicator of a country economic and financial health! It measures the value of goods and services produced over a certain period of time within a country, taking into consideration variable such as productions, imports, exports, savings, and variation of stocks. It also provides information to investors on the economic/financial growth and the currency strength of a country.
It represents the difference between a country’s imports and exports.
It represents the difference between a nation’s savings and its investments! It’s a powerful indicator, giving information about a country’s economic health in the sense that, it defines the sum of balance of trade (goods and services exports less imports), net income from abroad and net current transfers. A positive current balance account balance indicates that the nation lends more to the rest of the world VS a negative current account balance indicates that a country is a net borrower from the rest of the world.
It is an indicator which measures the sales of retail goods over a certain period of time.
Unemployment is a percentage calculated by dividing the number of unemployed individuals by all individuals currently in the labor force. The higher the unemployment gets, the lesser attractive for investments it is for a country.
It represents the total number of U.S. workers of any business, except general government employees, private household employees, employees of nonprofit organizations that provide assistance to individuals and farm employees. An increase in NFP means that, the businesses are hiring, newly employed people have money to spend on goods are services so, the economy is growing.
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