The US dollar moves on various factors, be it economic, financial, or even political. However, the following are some of the most sought-after and most influential economics reports that never fail to move the dollar.
If you’re a forex trader, you should certainly pay attention to these reports. They will help you make better and well-informed decisions regarding your dollar trades.
Trade Balance
The Bureau of Economic Analysis (BEA) and the US Census Bureau jointly creates the trade balance report.
This report offers some insight into import and export activity. The nominal trade deficit within the report represents the current dollar value of US exports minus the current dollar value of US imports.
It’s also the indicator in the trade balance report. When imports are higher than exports, the country has a trade deficit. When the opposite is true, it then has a trade surplus.
A trade deficit is bad news for the US dollar because it means foreign products have higher demands and they are bought using foreign currencies. A trade surplus, on the flipside, means that more foreign consumers are buying American goods.
Nonfarm Payroll Report
The nonfarm payroll report comes from the US Department of Labor Bureau of Labor Statistics. This report monitors the number of jobs added or lost every month.
If the country is creating jobs at a good rate, interest rates may move higher. Foreign investors love higher interest rates, which means it also pushes the appeal of and demand for the US dollar.
Meanwhile, job losses may push the US Federal Reserve to cut interest rates and weaken the demand for the dollar.
The report is released every first Friday of every month.
Gross Domestic Product
The gross domestic product reports the monetary value of all the finished goods and services that have been produced within a country in a specific time period. This report usually serves as another measure of a nation’s health.
Just like the nonfarm payroll report, a higher GDP figure usually also translates to higher interest rates. As interest rates go higher, foreign investors flock the country. As a result, the dollar typically rises.
Conversely, when the GDP figure falls, the dollar also falls. The Bureau of Economic Analysis publish the GDP data on the last day of every quarter.
Retail Sales Figure
The retail sales figure is the aggregated measure of the retail sales of products over a particular span of time.
Strong retail sales indicate that the economy is strong. Meanwhile, weak sales mean weak economy. Just like the other indicators so far, the strength of the retail sales figure also means stronger moves for the US dollar.
The retail sales report is compiled and published by the Census Bureau and the Department of Commerce every month.
Industrial Production
The industrial production data comes from the monthly raw volume of goods produced by industrial firms like factories, mines, and electric utilities in the US.
The industrial production figures usually represent similar changes in the overall economic activity. That means strong figures pave the way for bullish moves in the dollar. And weak figures mean bearishness is on the horizon for the greenback.