Forex Terms

Forex Terms

* ADP Employment Change The change to employees, sent in by Automatic Data processing, Inc, measures the change in the number of workers in the U.S.. Generally, the increase in this index has positive effects on consumer spending which stimulates economic growth. Therefore, a high value is considered positive for the dollar, while a low value is considered negative.

* Average Hourly Earnings The average hourly wage notified by the Bureau of Labor Statistics is an important indicator of labor cost inflation and market tightness. The Central Bank of America gives them great importance when deciding on interest rates. A high indicator is positive for the dollar, while a low negative.

* Building Permits A guide for building permits shows the number of permits issued for new dwellings. The building permits are a first indication of the state housing sector. A high indicator is positive for the currency, while a low negative.

* Business Inventories Commercial Stock, notified by the Census Bureau of America, which counts the monthly percentage change in stocks of manufacturers, retailers and wholesalers. A downward trend of this indicator is positive for the dollar, and reducing their stocks of the retailers make larger orders to wholesalers, who in turn take their orders to manufacturers.

* Capacity Utilization The operating ratio measures the percentage of resources available actually used by a country’s total production. It is indicative of the overall growth and demand in a country. A high indicator is positive for the currency, while a low negative.

* Chicago Purchasing Managers The index of orders in the processing of Chicago suggests economic conditions across the states of Illinois, Indiana and Michigan. This indicator shows the trend of business and associated with the index of industrial production ISM. It is widely used to illustrate the universal economic conditions in the U.S.. A result above 50 indicates growth and is considered a positive sign, while a score below 50 indicates recession and is considered negative.

* Construction Spending The construction costs, announced by the Census Bureau of America, is an indicator that measures the total expenditure in the U.S. for all types of structures. A high indicator is positive for the dollar, while a low negative.

* Consumer Credit Consumer credit measures the total amount that consumers borrow. Indicates whether consumers can afford high costs, which fuel economic growth. A high indicator is positive for the dollar, while a low negative.

* Consumer Confidence The consumer confidence shows the level of trust consumers have in economic activity. A high level of confidence stimulates economic growth, while lower level leads to an economic downturn. A high indicator is positive for the currency, while a low negative.

* Consumer Price Index The consumer price index measures the change between the retail prices of a representative basket of goods and services. The consumer price index is a key indicator to measure inflation and changes in buying patterns. A high indicator is positive for the currency of the country leads to higher interest rates to curb inflation, while contrary evidence is a low negative.

* Current Account The current account measures the quarterly change in net input-output current, including goods, services and interest payments to and from the country. A current account surplus shows that capital inflows are greater than the outflow. A high indicator is positive for the currency of the country while a low is negative.