Indicators for Forex Trader

Industrial produce

Industrial production report, as the name suggests is the report based on the production and its changes of factories, industries, utilities and mines across the country. The report also shows the optimization of their utilization- the degree to which their capacities are being used.
Forex Traders who rely on this indicator are mostly concerned about the utility production which is highly volatile because the utilities industries are heavily influenced by changes in weather. Weather changes can cause revisions between the reports which consequently can cause volatility in the currency of the country.


Consumer Price Index
The CPI is the most widely known indicator which measures the consumer good price change over more than 180 different categories. The CPI report is often compared with the export report to find out what profit (or loss) the country is making on its goods and services. Closely related other indicators, which can be helpful to forex traders, can be the purchasing managers index (PMI), the employment cost index (ECI), durable goods report, and the hosing stats.

Exports are always well scrutinized by the forex traders in any case since the export prices often change with any gain or loss on the nation’s currency.

All the above and previously mentioned indicators can prove to be a valuable resource to the forex traders when applied judiciously.