Measures the total amount of profits earned by businesses with more than 20 employees before taxes have been taken out. Change in the number of jobs advertised in the major daily newspapers and websites covering the capital cities.
This data tends to have more impact when it's released ahead of the government employment data rather than after. Consumer Confidence is a measure of popular sentiment concerning the Japanese economy. The figure is derived from a survey that asks thousands of Japanese consumers about personal expenditure patterns and inflationary expectations.
In general, rising consumer confidence precedes increased consumer spending, which drives both economic growth and inflation. Even though the Japanese economy is heavily driven by its export sector, domestic consumer confidence is an important gauge of overall economic activity and future inflationary pressures.
A headline figure above 50 shows positive consumer sentiment, while a number below 50 shows negative consumer sentiment; the greater the distance, the stronger the sentiment. The Construction Purchasing Manager's Index PMI measures the level of activity among purchasing managers in the construction sector of the economy.
Above 50 signals industry expansion; below 50 indicates a contraction. Construction figures are an important indicator of housing demand. Level of a diffusion index based on surveyed investors and analysts. This is a survey of about 2, investors and analysts which asks respondents to rate the relative 6-month economic outlook for the Eurozone. Measures changes in the selling prices producers charge for goods and services, and well as tracks how prices feed through the production process.
Because producers tend to pass on higher costs to consumers as higher retail prices, the PPI is valuable as an early indicator of inflation. Simply put, inflation reflects a decline in the purchasing power of the Dollar, where each dollar buys fewer goods and services.
The report also gives insight into how higher prices from raw materials flow toward the final product. A rise in PPI signals an increase in inflationary pressures. Given the economic instability associated with rising price levels, the Fed often will raise interest rates to check inflation. A low or falling PPI is indicative of declining prices, and may suggest an economic slowdown. The PPI records prices at various stages of production: Though intermediate and crude goods prices do provide insight for future inflationary pressure, it is the price of finished goods that generates most interest for market participants.
The finished goods data is able to gauge price pressure before the goods reach the retail market. Dollar volume of new orders, shipments, unfilled orders and inventories as reported by domestic manufacturers.
Factory Orders is not a widely watched economic release. The Advance Release on Durable Goods Activity reported one week earlier tends grab more market attention, given that durable goods make up more than half of factory orders. Factory Orders does provide a comprehensive look at the manufacturing sector. Specifically, the New Orders figure can act as a gauge of demand across industries while Shipments are indicative of supply. The Unfilled Orders and Inventory figures reconcile the balance between New Orders and Shipments; high Shipments are indicative of an excess of demand relative to supply, high Inventories signal an excess of supply over demand.
On a Technical Note: The New Orders figure measures the value of orders received by manufacturers for new products from both domestic and foreign sources. The total value of products shipped is calculated in Shipments while Unfilled Orders measures the value of goods backlogged for order but not yet shipped.
Lastly, Inventories gauges the amount of unsold goods held by manufacturers. Gauge for the overall performance of the country's service sector. The Services PMI interviews executives on the status of sales, employment, and their outlook. Because the performance of the country's service sector is extremely consistent over time, services does not impact final GDP figures as much as the more volatile figure on the manufacturing sector.
For this reason Services PMI usually causes little market movement. The survey results are quantified and presented as an index on a scale. The headline figure is the percentage change in the index. An index level of 50 denotes no change since the previous month, while a level above 50 signals an increase or improvement, and below 50 indicates a decrease or deterioration. Gauge for goods sold at retail outlets in the past month.
Retail Sales is a leading indicator for the economy. Rising consumer spending fuels economic growth, confirms signals from consumer confidence, and may spark inflationary pressures. Describes the flow of all goods and services, income, and transfer payments to and from Australia. This figure acts as a gauge of how Australia 's economy interacts with the rest of the world.
Whereas the other side of the Balance of Payments, the Capital and Financial Accounts, deals mainly with financial assets and investments, the Current Account gives a detailed breakdown of how the country intermingles with rest of the global economy on a practical, non-investment basis. The Current Account is comprised of the value of the trade balance exports and imports for goods and services , income payments such as interest, dividends and salaries and unilateral transfers aid, taxes, and one-way gifts.
A positive value current account surplus indicates that the flow of capital from these components into Australia exceeds the capital leaving Australia. A negative value current account deficit means that there is a net capital outflow from these sources. Persistent Current Account deficits may lead to a natural depreciation of a currency, as trade, income and transfer payments usually reflect Australian dollars leaving the country to make payments in a foreign currency just as underlying surpluses act as an appreciating weight.
There are a number of factors that often work to diminish the impact of the Current Account release on the market. The report is not very timely, released every quarter. In addition, many of the components that lead to the final Current Account production and trade figures are known well in advance. Lastly, since the report reflect data for a specific reporting month, any significant developments in the Current Account should plausibly have been felt during that quarter and not during the release of data.
It gives a detailed picture of how the Australian economy interacts internationally, breaking down these interactions into separate components that can be tracked and often anticipated.
Thus, the weight of the Current Account has led it to historically be one of the more important reports out of Australia. Pada bagian ini anda tersedia analisis yang kualitatif dari para ahli terkemuka portal MT5 dalam bidang Forex.
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The statement contains the latest decision regarding changes to the countries short term interest rates, monetary policy, and the direction of the economy. Short term interest rates are the paramount factor in currency valuation. A hawkish statement could boost the currency where a dovish statement could lower the currency's valuation. A country's trade balance reflects the difference between exports and imports of goods and services. The trade balance is one of the biggest components of the Balance of Payment, giving valuable insight into pressures on country's currency.
A monthly gauge of the UK service sector that takes into account business outlook. The survey queries executives in transport and communications, financial intermediation, business services, personal services, computing and IT, hotels and restaurants. Purchasing managers are tasked with gauging future demand, and adjusting orders for materials accordingly. The PMI summarizes the opinions of these executives to give a picture of the future of the service sector. A higher PMI indicates that materials purchases are increasing and that the economic outlook is positive.
Alternately, a lower PMI means orders for materials are down and the future outlook is less favorable. By nature, the figure is very sensitive to the business cycle and tends to match growth or decline in the economy as a whole. Because the contribution services makes to the economy tends to be very consistent and predictable, Services PMI figures typically do not move markets.
An indicator for broad overall growth in the Eurozone. Robust GDP growth signals a heightened level of economic activity, and therefore a high demand for currency. Economic expansion also raises concerns about inflationary pressure, which generally prompts monetary authorities to increase interest rates.
This means that positive GDP readings are generally bullish for a given currency, while negative readings are bearish. Due to the untimeliness of this report and because data on GDP components are available beforehand, the actual GDP figure is usually well anticipated. But given its overall significance GDP has the tendency to move the market upon release, acting to confirm or upset economic expectations. Robust GDP growth signals a heightened level of activity that is generally associated with a healthy economy.
However economic expansion also raises concerns about inflationary pressures which may lead to monetary policy tightening. GDP is the total market value of goods and services produced in the Eurozone within a given period after deducting the cost of goods and services used up in the process of production. Therefore, GDP excludes intermediate goods and services and considers final aggregates only. Surpluses and Deficits A positive Trade Balance surplus indicates that exports are greater than imports.
When imports exceed exports, the country experiences a trade deficit. Because foreign goods are usually purchased using foreign currency, trade deficits usually reflect currency leaking out of the country. Such currency outflows may lead to a natural depreciation unless countered by comparable capital inflows inflows in the form of investments, FDI - where foreigners investing in local equity, bond or real estates markets.
At a bare minimum, deficits fundamentally weigh down the value of the currency. Ramifications of Trade Balance on Markets There are a number of factors that work to diminish the market impact of Trade Balance upon immediate release. The report is not very timely, coming some time after the reporting period. Developments in many of the figure's components are also typically anticipated well beforehand.
Lastly, since the report reflects data for a specific reporting month or quarter, any significant changes in the Trade Balance should plausibly have already been felt during that period - and not during the release of data. However, because of the overall significance of Trade Balance data in forecasting trends in the Forex Market, the release has historically been one of the most important reports out of the any country. ISM Non-Manufacturing index gauges business conditions in non-manufacturing industries, based on measures of employment trends, prices and new orders.
Though non-manufacturing sectors make up the majority of the economy, the ISM Non-Manufacturing has less market impact because non-manufacturing data tends to be more cyclical and predictable.
However, these sectors do account for a considerable portion of CPI. As a result, the figure gives insight into conditions which can impact output growth and inflationary pressures. There are 10 separate indices reported, but Business Activity is considered the most important. The other nine indexes are: The Ivey Purchasing Managers Index PMI is an economic index which measures the month to month variation in economic activity as indicated by a panel of purchasing managers from across Canada, and is prepared by the Richard Ivey School of Business.
The PMI is provided in two formats:More...