Open the economic calendar on and look for major economic releases marked with two or three exclamation points. These indicators represent statistical data that typically have the strongest impact on the currencies of the countries involved.
Traders usually focus on the difference between the actual released figure and the market forecast. The larger the gap between these values, the higher the likelihood of increased volatility on the price chart of the affected asset. In most cases, this impact is seen directly in the national currency of the country where the data is released.
In many cases, traders tend to focus on US economic news, as it is often easier for beginners to interpret. This means that attention is usually centred on the US dollar. When US data is released and comes in stronger than market expectations, the dollar typically strengthens. As a result, the EUR/USD chart may move lower, since the dollar is the quote currency in this pair and a stronger dollar means fewer dollars are needed to buy one euro.
For traders who prefer clearer price relationships, the USD/JPY pair can be a simpler option. In this case, the US dollar is the base currency, and the Japanese market is usually closed at the time major US data is released. When the news supports a stronger dollar, the USD/JPY chart will generally move higher, reflecting the direct relationship between the dollar’s strength and the pair’s price.
Building permits refer to the monthly report published by the US government that shows the total number of construction permits issued during that period.
This data is closely monitored because it offers valuable insight into the future direction of the economy. An increase in building permits usually signals growth in construction activity and related sectors, making it an important leading indicator for traders who focus on currency pairs involving the US dollar.
The report is typically released between the 17th and 18th of each month.
The Consumer Confidence Index measures how positive or negative consumers feel about the current economic environment and future outlook. It is based on surveys that assess people’s willingness and ability to make purchases in the near term.
This indicator is closely watched because strong consumer confidence suggests improving living standards and higher consumer spending. Increased spending supports economic growth, boosts overall economic activity, and can strengthen the value of the national currency.
The Consumer Confidence Index is usually released on the last Tuesday of each month.
The Consumer Price Index reflects changes in the cost of living within a country by tracking the prices of a basket of consumer goods and services, such as food and beverages, housing, transportation, and healthcare. It is widely used as a measure of inflation.
This indicator is closely followed because it is a key lagging indicator. Traders use CPI data to assess inflation trends and anticipate possible adjustments to interest rates, allowing them to plan their trades accordingly.
CPI data is released on a monthly basis.
Durable Goods Orders track the number of new orders placed for the manufacture and delivery of long-lasting goods, such as machinery and engines.
This indicator is important because it provides insight into the pace of economic growth. An increase in orders suggests higher future production levels, giving an indication of factory workloads ahead. This can directly influence sales performance and employment conditions, including working hours for employees.
The data is typically released around the 20th of each month.
The Labour Cost Index measures changes in wages, bonuses, and employee benefits across all non-agricultural sectors. The data is gathered through surveys conducted among employers.
This indicator is closely linked to inflation, as labour costs represent a significant expense for businesses. It is also carefully monitored by the US Federal Reserve, which uses the data as an important reference when shaping monetary and economic policy decisions.
The Labour Cost Index is released on a quarterly basis.
Gross Domestic Product measures the total value of all goods and services produced within a country over a specific period, usually a quarter or a full year. GDP releases often trigger noticeable movements in a country’s currency, as they provide a broad snapshot of economic performance. This data is published not only in the United States but also in many other countries, including Canada, the United Kingdom, and Japan.
GDP is closely monitored because it allows traders to compare economic growth across different countries and assess the relative strength of their economies. These comparisons can help in forming expectations about future movements in currency pairs.
GDP figures are released on a quarterly basis.
The number of new housing starts measures how many residential construction projects began during the previous month.
This indicator is closely linked to overall economic growth. A sustained decline in construction activity can signal a potential economic slowdown or recession, while increasing numbers often point to improving economic conditions. Changes in housing starts can also influence the value of the US dollar, as they reflect the strength of the domestic economy.
This data is usually released around the 17th of each month.
Changes in industrial production show the volume of goods produced within a country over a given month. This data is calculated using output figures from industrial companies, factories, as well as the mining and energy sectors.
This indicator is considered a coincident indicator, as it reflects what is happening in the economy at the current moment. It helps identify which sectors are expanding or contracting, making it useful for assessing the present trend of the national currency. Industrial production data can also provide early signals about shifts in employment levels, average wages, personal income, and inflation.
The report is typically published between the 11th and 12th of each month.
