Foreign Exchange Market

Three economic data for foreign exchange traders

Changes in the number of non-agricultural employment. The most important economic data on the financial calendar fully reflects the creation, loss, wages and working hours of employment opportunities. The household expenditure survey is for families, while the non-agricultural employment report is for commercial organizations. The important data included include: net changes in non-agricultural employment, unemployment rate, manufacturing employment, and average hourly wage. The non-agricultural employment report reflects the monthly employment changes in the sector's employment. The number of non-agricultural employment is the most attractive employment indicator and is considered to be the most comprehensive and authoritative employment data. Given the importance of labor to the economy, this makes non-agricultural data quite important.

Unemployment rate. The percentage of people registered for unemployment. The data is calculated by dividing the number of unemployed people who are capable of work by the total number of people with the ability to work. After the non-agricultural employment is announced, the employment rate is usually used as the most closely watched snapshot data to reflect the current labor situation. Unemployment data provides insight into a country's production, consumption, and consumer confidence. The reduction in unemployment is awaiting an increase in spending as more and more people have jobs and wages to spend. Increased spending encourages economic growth, which may trigger inflationary pressures; conversely, high levels of unemployment indicate economic instability and reduced demand.

Federal Reserve interest rate resolution. Refers to the Fed’s announcement to raise, lower or maintain the benchmark interest rate. The Federal Reserve Open Committee holds 8 meetings a year to discuss monetary policy, and the relevant decisions will be announced after each meeting. The Fed's interest rate decision can have a major impact on the financial sector. Changes in interest rates will affect consumer credit, bonds, and the US exchange rate. Experts believe that the independence and flexibility of the price level is a necessary condition for the effectiveness of monetary policy.

The Fed will issue a policy statement after each interest rate decision is announced. Because the outcome of an interest rate resolution can usually be accurately expected, the wording of the Open Market Committee in its policy statement will be at least as important as it would be, even if it is not more important than interest rate changes. The policy statement reflects the Fed’s collective view of the economic situation and future monetary policy, and interest rate changes are nothing more than a numerical change. The policy statement provided clues to the Fed's future policy direction. The future direction of interest rates is usually more important than the current level of interest rates.

Three economic data for foreign exchange traders
Changes in the number of non-agricultural employment. The most important economic data on the financial calendar fully reflects the creation, loss, wages and working hours of employment opportunities. The household expenditure survey is for

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