Earn up to
$50000
for inviting friends
to get StartUp Bonus
from InstaForex
No investments required!
GET BONUS
55%
from InstaForex
on every deposit
Reply to thread
Results 1 to 2 of 2

Thread: WHICH REPORTS ARE MORE IMPORTANT THAN THE OTHER?

  1. #1 You can automatically minimize the read posts in your account in the 'Forum Settings'
    Forex in the blood
    I am:
    ----
     
    montavic will become famous soon enough montavic's Avatar
    Join Date
    Dec 2020
    Posts
    273
    Accumulated bonus
    538 USD (What is this?)
    Thanks
    15
    Thanked 56 Times in 44 Posts
    SubscribeSubscribe
    Subsribed 0

    Default WHICH REPORTS ARE MORE IMPORTANT THAN THE OTHER?

    I want you to know that whether you are a beginner or an advanced trader, it is important to know what to look for and how certain reports may affect the price behavior of the markets. The figure below shows what I see as the major focuses of economic reports here in the United States and what is in my opinion the order of importance. My selection holds true in all business cycles. The number-one focus should always be to read and to listen to what the voting members of central banks are looking at and on what they are basing their decisions to adjust interest rates. That makes sense, right? So the releases of their FOMC meeting announcements are important, as well as the minutes of their last meeting. The minutes are released within two weeks of the last FOMC meeting. In Figure below, I have two small branches from the FOMC meetings: One is the Beige book; heighten your awareness of this, as it is released two weeks prior to a Fed meeting. The other is the Federal Reserve districts business surveys; these reports will show the underlying strength or weakness of everything from business credit conditions to the health of the consumer debt to income ratios.

    Name: 1.png Views: 7 Size: 58.1 KB
    Economic Report Reference Chart

    You and I want to watch the reports and speaking engagements of the voting members of the FOMC. Generally, they will give clues as to what their intentions are and what their concerns are. One series of reports is the Feds Beige book, and the other reports are the individual Fed district business surveys, such as the Philadelphia Fed survey. Then we trickle down the flow chart reading from left to right and see the employment situation; in good times, we should see a low employment level with moderating wage costs. In hard times, we should see high unemployment rates. When times are good, as in the period through 2005 when the nations unemployment level was under 5 percent, we need to be aware of ugly inflationary pressures; so forex traders need to focus on these inflation reports, such as the Producer Price Index and the Consumer Price Index. After that, taking a look at the financial health of the consumers is key to determining the continued strength or weakness of the economy. After all, if they have no more spending cash or are maxed out on their credit cards, we can anticipate a downturn in the retail sector, right? If the consumer stops shopping for clothes, electronic products, home design products, cars, or appliances, which we consider durable goods, then that wont be good for the economy and the Fed would be expected to stop raising interest rates or to possibly lower rates.

    Here is a great example of why we want to pay attention to Fed speakers. When newly appointed Chairman Ben Bernanke took over, he had a private conversation with Maria Bartiromo, anchor of CNBC, one weekend. When she revealed his thoughts in an exclusive interview on national TV, the markets responded in such a way that Bernanke will be more selective in what he says and who he talks to at private functions! Once again, we need to follow the people who make the decisions, and we need to listen to and to read what drives their decision-making process for adjusting interest rates.

    FOMC Meetings

    The Federal Open Market Committee consists of the seven governors of the Federal Reserve Board and five Federal Reserve Bank presidents. The FOMC meets eight times a year in order to determine the near-term direction of monetary policy. Changes are now announced immediately after FOMC meetings. There are a few accompanying statements the Fed may make after it announces any adjustments in interest rates. One statement is if the economy is at risk for economic weakness, or the other is if the economy is at risk for inflationary pressures. And there is always a chance for a neutral stance.

    Beige Book

    The Beige book is a combination of economic conditions from each of the 12 Federal Reserve regional districts. Truthfully, the report is aptly named the Beige book due to the color of its cover. This report is released usually two weeks before the monetary policy meetings of the FOMC. This report on economic conditions is used at FOMC meetings, where the Fed sets interest rate policy. These meetings occur roughly every six weeks. If the Beige book portrays an overheating economy or inflationary pressures, the Fed may be more inclined to raise interest rates in order to moderate the economic pace. Conversely, if the Beige book portrays economic difficulties or recessionary conditions, the Fed may see the need to lower interest rates in order to stimulate activity.

    Though trading on financial markets involves high risk, it can still generate extra income in case you apply the right approach. By choosing a reliable broker such as InstaForex you get access to the international financial markets and open your way towards financial independence. You can sign up here.


  2. #2 You can automatically minimize the read posts in your account in the 'Forum Settings'
    MT5 Addict
    I am:
    ----
     
    mahmoudabuzaidsaad has a spectacular aura about mahmoudabuzaidsaad has a spectacular aura about mahmoudabuzaidsaad has a spectacular aura about mahmoudabuzaidsaad's Avatar
    Join Date
    Sep 2020
    Posts
    676
    Accumulated bonus
    299 USD (What is this?)
    Thanks
    2
    Thanked 731 Times in 300 Posts
    SubscribeSubscribe
    Subsribed 0
    The Al Kut report is also known as the Commitment Reports of Traders in the global stock markets. It is a report issued on a weekly basis that shows to traders the extent to which the supply and demand for commodities have changed in the global stock markets, whether these commodities are foodstuffs such as wheat and coffee or precious materials and minerals such as gold, oil, silver and It also explains the supply and demand process

    Though trading on financial markets involves high risk, it can still generate extra income in case you apply the right approach. By choosing a reliable broker such as InstaForex you get access to the international financial markets and open your way towards financial independence. You can sign up here.


  3. The Following User Says Thank You to mahmoudabuzaidsaad For This Useful Post:

    montavic (04-03-2021)

Reply to thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts