Economic indicators that move forex
Economic data releases are the biggest scheduled drivers of currency prices. When a country's economy looks strong, its currency tends to rise; when data disappoints, it tends to fall. Here are the indicators that move the forex market most — and how to trade them.
Growth & output
- GDP — the broadest measure of an economy. A higher-than-expected reading is usually bullish for the currency.
- Durable goods orders — big-ticket manufacturing orders; a gauge of business confidence.
- ISM / PMI surveys (ISM services, Chicago PMI, Philadelphia Fed) — purchasing-manager surveys where above 50 = expansion, below 50 = contraction. Leading indicators, so markets watch them closely.
- Construction spending & business inventories — secondary indicators; usually mild impact unless they confirm a trend.
Jobs & consumers
- Jobless claims — weekly unemployment filings; an early read on the labour market before the monthly payrolls report.
- Michigan consumer sentiment — how confident consumers feel about spending; higher is generally currency-positive.
Money & central banks
- Money supply (M1/M2/M3) — the amount of money in circulation; relevant to inflation expectations.
- The Beige Book — the Federal Reserve's regional economic survey, released eight times a year ahead of rate decisions.
How to trade a data release with FxErvin
You don't need to forecast these numbers yourself. When a release creates an opportunity, our analysts publish a signal with a defined entry, stop-loss and targets. Prices can move fast around releases, so always keep the stop-loss and remember not to enter a signal the market has already passed. Learn more in fundamental analysis explained.