Forex Tips & Daily Analysis

Measures Change in the price businesses and the government pay for labor, excluding bonuses; Usual Effect Actual > Forecast = Good for currency; Frequency Released quarterly, about 45 days after the quarter ends; Next Release Nov 12, 2008 Why Traders Care It's a leading indicator of consumer inflation - when businesses pay more for labor the higher costs are usually passed on to the consumer; Also Called Wage Cost Index, Labour Price Index;

Measures the mood of households in regard to economic conditions. The reading is derived from a monthly survey that asks households to evaluate the prospects for the economy in the future. Higher readings point to higher consumer optimism. When consumers are optimistic they tend to purchase more goods and services, which stimulates the economy.

Measures Change in the number of people claiming unemployment related benefits during the previous month. A rising trend has positive effect on the nation currency. Although it's generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor conditions;

Measures Change in the price businesses and the government pay labor, including bonuses; Usual Effect Actual > Forecast = Good for currency; Frequency Released monthly, about 45 days after the month ends; Next Release Sep 17, 2008 FF Notes Data represents a 3-month moving average compared to the same period a year ago. A figure that excludes bonuses is also released, but not included for lack of significance; Why Traders Care It's a leading indicator of consumer inflation - when businesses pay more for labor the higher costs are usually passed on to the consumer; Also Called Average Earnings Including Bonuses;

Measures the percentage of the total work force that is unemployed and actively seeking employment. A falling trend has a positive effect on the nation's currency. Working people tend to spend more, and consumer spending is a major driver of the economy. However, unemployment usually draws little attention because traders view it as a lagging indicator.

Measures the change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities; if the actual result bigger than the expected result it is good for the currency. It is important because it's a leading indicator of economic health - production reacts quickly to ups and downs in the business cycle, and is correlated with consumer conditions such as employment levels and earnings; Frequency Released monthly, about 45 days after the month ends; Next Release Sep 12, 2008 FF Notes Tends to have a relatively mild impact because Germany and France, which account for about half of the Eurozone's economy, release earlier production data; Why Traders Care It's a leading indicator of economic health - production reacts quickly to ups and downs in the business cycle, and is correlated with consumer conditions such as employment levels and earnings;

The Bank of England (BOE) Inflation Report provides detailed economic analysis and an assessment of inflation over the next two years. The report is published quarterly and holds critical insights into the bank's view of inflation and the economic conditions that will effect interest rates in the future. Traders scrutinize this report as it's been known to provide clues about the bank's future monetary policy.

Bank of England (BOE) Governor Mervyn King will testify before the Treasury Select Committee regarding his reappointment as Governor. As head of the central bank's governing body, which is responsible for setting the nation's short term interest rate, his speeches can sometimes cause market volatility as traders react to clues regarding future monetary policy.

FOMC members vote on where to set the nation's key interest rates, and their speeches are often used to drop subtle clues regarding future monetary policy and interest rate shifts

Due to speak after accepting the European Banker of the Year award, in Frankfurt. As head of the central bank's governing body, which is responsible for setting the euro zone's short term interest rate, his speeches can sometimes cause market volatility as traders react to clues regarding future monetary policy.

Due to speak, in Houghton. Federal Reserve FOMC members vote on where to set the nation's key interest rates and their public engagements are often used to drop subtle clues regarding future monetary policy

Measures Change in the total value of sales at the retail level, excluding automobiles; Usual Effect Actual > Forecast = Good for currency; Frequency Released monthly, about 14 days after the month ends; FF Notes Automobile sales account for about a 20% of Retail Sales, but they tend to be very volatile and distort the underlying trend. The Core data is therefore thought to be a better gauge of spending trends; Also Called Retail Sales Ex Autos;

Measures Change in the total value of inflation adjusted sales at the retail level; It's the primary gauge of consumer spending, which accounts for a majority of overall economic activity

The Corporate Goods Price Index (CGPI) measures the rate of inflation (i.e., the rate of price changes) experienced by corporations when purchasing goods. A rising trend has a positive effect on the nation's currency because when businesses pay more for goods, they are likely to pass the higher costs to the consumer.