The economic calendar – instrument for Forex

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Every week there are important economic data which are relevant for foreign exchange trading. The data important for the first week of December should be listed and explained below. The compilation of these data is also called the economic calendar and it is an important instrument in forex. This information can be important for fundamental analysis as well as tactical decisions.

 

The German manufacturing PMI (Purchasing Manager Index)
The German purchasing manager index of the manufacturing industry (PMI) measures the respective activity level of the acquisition managers in the production sector of the national economy. Each reading on the value 50 points to an extension, while a reading under 50 indicates a reduction in purchases. This index gives an indication of the state of the production sector in Germany. Forex traders usually observe this survey very closely, as acquisition managers have early access to data on the performance of their companies, which in turn can be a leading indicator of the overall performance of the economy. A higher than expected value is considered to be positive/bullish for the EUR, while a lower than expected negative/bearish is seen for the EUR. The same applies to the Euro-zone manufacturing index PMI (Purchasing Manager Index). Here, however, the statements made relate to the whole of the euro area.

 

The American ISM Manufacturing index PMI (Purchasing Manager Index)
The Institute for Supply Management (ISM) tracks the number of manufacturing activities of the processing industry that were realized in the previous month..

 

This information is considered to be very important and is considered to be a trustworthy economic measurement. Once this index has a value below 50, due to a reduction in activities, it tends to indicate an economic review, especially if this trend lasts for several months. A value above 50, on the other hand, usually indicates a time of economic growth. The ISM index is the result of a monthly survey of over 400 companies in 20 branches of industry in over 50 states of the ÚSA. The ISM quality has proven to be reliable over time. During a review, the ISM can show the change in the economic cycle a few months in advance. A higher than expected rating should be considered positive/bullish for the USD, while a lower than expected rating can be seen as negative/bearish for the USD.

 

Euro-Zone producer price Index (month)
The producer price index (PPI) is an inflation indicator that measures the mediocrity of the change in sales prices received from domestic producers for their goods and services. The PPI measures the price change from the perspective of the respective sellers. The PPI considers three production areas: industry-based, consumer-based and manufacturing process-based companies.

 

As manufacturers pay more for goods and services, they usually pass the costs on to consumers, so that PPI can be seen as a leading indicator of consumer inflation. A higher than expected release should be considered positive/bullish for the EUR, while a lower than expected rating can be seen as negative/bearish for the EUR.

 

German service-Purchasing manager-Index
The German Service purchasing Manager index (PMI) records the activity level of the acquisition managers in the performance sector. Each rating over 50 points to an extension, while a measurement below 50 indicates a reduction. It gives an indication of the health of the service sector in Germany. Traders observe this survey very closely, as acquisition managers have access to data about the performance of their companies at an early stage. This makes it a leading indicator of the overall performance of the economy.

 

Higher than expected, this value should be considered positive/bullish for the EUR, while a lower than expected reading can be seen as negative/bearish for the EUR. The same applies to the euro area with the evaluation of the European Service purchasing Manager index.

 

Retail sales in Europe (month)
Retail sales are a monthly measurement of all goods sold by retailers, based on a sample of department stores of various types and sizes in the eurozone. It is an important indicator of consumer spending and also linked to consumer confidence. A higher than expected reading should be regarded as positive/bullish for the EUR, while a lower than the expected assessment as negative/bearish for the EUR can be seen.

 

Eurozone GDP (year)
Gross domestic product (GDP) is the most general measure of economic activity and is a key indicator of economic health. The quarterly Pozentveränderung of GDP shows the growth rate of the
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