A Good Forex Currency Trading System - Trade These Economic Indicators

It seems everyone is looking for a good forex currency trading system. Well before jumping into the big time it is important to lay a foundation. Before we get into currency trading system let's start with looking at what drives the currency market. Let's look at a list of economic indicators. It may not be fun but I can assure you that a good working knowledge of these indicators (used in the USA) will help you in the long run and allow you to fully utilize your forex currency trading system to the fullest potential.

It is important to remember that the numbers are not as important as the anticipation of these numbers, this drives the market. When you learn how to use these indicators you will also improve your currency trading system.

Let's take a look at a few of these with a brief explanation. This is part one of an ongoing series

CCI - Consumer Confidence Index

The Conference Board; Last Tuesday of each month, 10:00am EST, covers current month's data. The CCI is a survey based on a sample of 5,000 U.S. households and is considered one of the most accurate indicators of confidence. The idea behind consumer confidence is that when the economy warrants more jobs, increased wages, and lower interest rates, it increases our confidence and spending power. The respondents answer questions about their income, the market condition as they see it, and the chances to see increase in their income. Confidence is looked at closely by the Federal Reserve when determining interest rates. It is considered to be a big market mover as private consumption is two thirds of the American economy. If you are looking for an effective forex currency trading system, then using this report can make it even better.

CPI - Consumer Price Index; Core-CPI

Bureau of Labor and Statistics; Around the 20th of each month, 8:30am EST, covers previous month's data.

The CPI is considered the most widely used measure of inflation and is regarded as an indicator of the effectiveness of government policy. The CPI is a basket of consumer goods (and services) tracked from month to month (excluding taxes). The CPI is one of the most followed economic indicators and considered to be a very big market mover. A rising CPI indicates inflation. The Core-CPI (CPI, excluding food and energy, expense items which are subject to seasonal fluctuations) gives a more stringent measure of general prices.

In the next article we will look at the following economic indicators: Employment Report, Employment Situation Report, and the FOMC Meeting (Federal Open Market Committee): Rate announcement.

If you really want to improve your trading then be sure to click on the link below, you will be glad you did. Good luck trading.