Do you understand economic data?

[Rambo35]

Before you rush to answer with yes, take a moment and make sure you do. I think one of the most evident cases that plenty of market participants do not understand economic data is the monthly NFP report.

You can tell how many cheer a headline figure of let's say 180K while unemployment dropped by 0.1% and claim the report was good, when in reality we saw a mediocre report which points to udnerlying issues in the labor market (this was just an example and not an actual report so please don't go looking for it). The headline fake on the NFP, as many pros call it, happen quite frequently as so many want a feel-good number.

In order to really understand what the report is saying you need to fully understand the report and dig much deeper which is something the majority don't feel like doing or don't understand how to do and what to look for. They rather rely on a report published on their favorite news channel. In my opinion, you need to understand economic reports if you want to become a successful trader.

 

[Easy Trader]

In my opinion, you need to understand economic reports if you want to become a successful trader.

I would say one would have to know enough to atleast be able to get out of the way while the train passes and the proverbial dust settles.

 

[Emibluz]

3. Well, to a reasonable extent, I do. But I base more on economic indicators. Like the Non Farm Payroll, Federal Open Market Committee (FOMC) stuff. Non Farm Payroll (NFP) is a good indicator of the employment rate and total strength of the labor market. It interpretes all business employees excluding general government employees, private household employees, and employees of nonprofit organizations, responsible for about 80% of the workers who add to GDP. The full report also represents estimates on the average work week and weekly earnings of these employees. As a general indicator of the health of the economy, usually the dollar in forex trading is affected more the further from expectations the figure for NFP turns out to be. The general trend for NFP since 1990 has been increasing. So borrowing this could in a way tell which currency pair with the dollar for carrier currency to go on.

 

[Rambo35]

3. Well, to a reasonable extent, I do. But I base more on economic indicators. Like the Non Farm Payroll, Federal Open Market Committee (FOMC) stuff. Non Farm Payroll (NFP) is a good indicator of the employment rate and total strength of the labor market. It interpretes all business employees excluding general government employees, private household employees, and employees of nonprofit organizations, responsible for about 80% of the workers who add to GDP. The full report also represents estimates on the average work week and weekly earnings of these employees. As a general indicator of the health of the economy, usually the dollar in forex trading is affected more the further from expectations the figure for NFP turns out to be. The general trend for NFP since 1990 has been increasing. So borrowing this could in a way tell which currency pair with the dollar for carrier currency to go on.

While you found or wrote a summary of what NFP represents, my question was: do you understand what to look for?

 

[jessoreit]

You understand and fully report on the report really do not feel like doing a lot of deep or do not understand how and what to look for something that needed to be excavated in order to understand what. They just published a report based on their favorite news channel. In my opinion, you want to be a successful trader, you need to understand financial reports.

 

[satriafx]

i'm learning this as well as many other that should be master in forex...
this fundamental is most difficult to be learn...

 

[Thinker]

I want to believe that I do. It is not a question of what exactly the NFP, for example, is. It is all about the numbers. As for me the market is not moved by the releases, but it is moved by the deviation of the actual numbers from the forecasted ones. If the difference is negative, traders rush selling and the price go down, and backwards.

 

[Agnnis bingamin]

Economic data is all about whats happening in all over the world around us and economy of the world.