- US – CPI – 13:30:00 GMT – The Consumer Price Index is one of the leading economic gauges to measure the pace of inflation. Simply put, CPI measures the acceleration of price in a fixed basket of goods and services. Higher CPI indicates that prices of the basket as a whole have increased and as such, it costs more of the local currency to buy the same basket of goods. CPI is also broken down to a core level which strips out the volatile components of the index, which usually include food and energy, but this various by country. Usually, central banks pay far greater importance to the core numbers than the headline numbers. Excessive inflation will induce a central bank to consider raising interest rates while falling inflation would give them the flexibility to lower interest rates.
- US – Initial Jobless Claims – 13:30:00 GMT – The Initial Jobless Claims shows the number of individuals who filed for unemployment insurance for the first time during the past week. The change serves as a barometer for the health of the US labor market.
- US – Leading Indicators – 15:00:00 GMT – The Leading Indicators Index is a composite index designed to forecast the trends in the overall economy. It combines ten leading indicators including average weekly hours, new orders, consumer expectations, housing permits, stock prices, and interest rate spreads.
- US – Philadelphia Fed Survey – 15:00:00 GMT – The Philadelphia Fed Survey measures the general business conditions of manufacturers in the Philadelphia Federal Reserve district. Conducted since 1968, the “Philly Fed” survey is an established report, valued for its timeliness, scope of coverage and tendency to forecast developments in the market moving ISM Manufacturing figure. The index is derived from a survey that asks respondents to rate the level of general business activity as ‘decrease’, ‘increase’, or ‘no change’. Results are calculated as the difference between percentage of positive and negative scores; zero acts as the centerline point. A rising trend has a positive effect on the nation’s currency because good manufacturing conditions are a sign of a strong economy. Although this survey is limited to manufacturers in Philadelphia only, traders pay close attention because the Philadelphia Federal Reserve releases it weeks before other major reports on manufacturing.
- US – Existing Home Sales – 15:00:00 GMT – The Existing Home Sales Index records sales of previously owned homes in the United States. This report provides a fairly accurate assessment of housing market conditions, and because of the sensitivity of the housing market to business cycle twists, it can be an important indicator of overall conditions at times when housing is particularly important to the economy. While used home sales are not counted in GDP, they do affect the United States economy. Sellers of used homes often use capital gains from property sales on consumption that stimulate the economy. Higher levels of consumer spending may also increase inflationary pressures, even as they help grow the economy. The headline is the total value of properties sold and also reflects the monthly and the annual change.
13:30:00 Expect an ~60 pips move
15:00:00 Expect an ~60-70 pips move
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