Likewise, since benefits typically come from government budgets or through taxpayers money, if too many people are claiming, this can have a negative impact on the economy as well, since more people are claiming money, and less people are spending it, since they are not earning an income through a job.
Economic Data Releases
Forex calendars or economic data calendars provide traders with all of the key dates of major upcoming economic data releases. These calendars provide the times, currencies, the events in question, and sentiment figures in relation to what the figures are expected to be (both positive and negative).
This is an essential tool for traders, since it will provide information that is directly related to their investments.
U.S. Non-Farm Payrolls (NFP)
The NFP figure measures the economy's amount of new jobs, and excludes employees from farms, the government, employees in private households, and nonprofit company employees.
The NFP number is released on the first Friday of each month. This is a very important indicator to forex traders. This is because historically and generally, any major changes in this figure tend to move with GDP changes, and since the NFP comes out more regularly, it can provide a sort of brief indication of where the GDP figure is likely to be headed (before the eventual figure comes out).
Industrial Production Index (IPI)
The IPI measures the USA's overall output of materials that they have produced. The figure measures manufacturing, gas utilities, mining, and electrics. Traders tend to watch this economic indicator closely, since it is related to the performance of the economy (in terms of goods produced). It can also be used as another future indicator of where the GDP figure might be headed.
Retail Sales Data
This economic data indicator is also known as the 'Advance Monthly Sales For Retail Trade' in terms of it's official report name. The figure does not factor inflation into its final figure, but does offer a straightforward measure of retail sales in terms of percentage, month to month.
Higher retail sales will obviously indicate that the economy is experiencing good 'economic health' and is growing in a positive direction.
Start trading today
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This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.