Top 5 Most Market Moving Indicators For The USD

[abdulla1]

When it comes to the currency market, most traders will use either technical or fundamental analysis or a combination of both to formulate their strategy, However, even for the casual currency trader, news or event risk can have a dramatic influence on the long and short-term price action of a currency pair.

 

In this report, we examine the 5 most market moving indicators for the US dollar (we update this report annually) against the Euro. The reason for our focus on the EUR/USD is its status as the most actively traded - and therefore benchmark – currency pair.

 

Economic Data is Important for Both Fundamental and Technical Traders

 

It is irrefutable that news or economic data can elicit a sharp reaction from currencies and other financial markets. However not all economic data is created equal. The monthly Non–farm payrolls for example has had a far bigger impact on the US dollar than other perennial top market movers like consumer prices. Indicators rarely keep their same level of influence over a currency though; so it common to see major shifts in the top ranking from year to year.

 

For example, over the past year, the worst contraction in the US housing market in a quarter century has led indicators like new and existing home sales to crowd out top releases from previous years – like ISM manufacturing. Also, what may create a lasting move in a currency on a day to day basis could be different from what triggers a knee jerk reaction in the US dollar.

 

The top 5 most market moving indicators for the US dollar on a day to day basis are:

 

1. Non-Farm Payrolls

2. ISM Non-Manufacturing

3. Personal Spending

4. Inflation (Consumer Price Index)

5. Existing Home Sales

 

Unlike the other numbers, the non-farm payrolls report consistently topped the list of most market moving indicators for the US dollar. As the US economy slowed in 2007 and into 2008, the stability of the labor market was closely watched by all traders and analysts because of its broad ramifications for the overall economy.

 

What’s In Store for the Future

 

While it seems that day to day news is slowly having a smaller impact on the US dollar, the top market moving indicators will still have their impact on both technical and fundamental trading. The market is highly sensitive to surprise releases from many of the more fundamentally crucial economic releases. What’s more, the cooler response to scheduled indicators over the longer term will not last. Interest in fundamentals historically goes through peaks and troughs depending on the presence of exogenous event risk. As risk in credit and other markets tempers, market participants will be more willing to take on speculative risk and respond to the ever evolving fundamental docket.

[Alick Bannerman]

I don’t really prefer using too many indicators as they are not really too useful and only makes it more confusing, so that’s why I am sticking with just few, as that gives me a bigger chance of success, it is also more rewarding to make trading simple or else we will never be able to find results.

 

I am prefer working with OctaFX broker and they got outstanding cTrader platform, it is an advance platform and really help us trade in much better way, so I can use indicators too and my personal preference is using moving average, it is easy to use and is highly profitable too, so that help us trade better without having to face much risk at all.

[Gee Dee]

Forex is a flexible business and now a day the popularity of this business is increasing very rapidly. For the growing popularity it has become the first choice as profession. Even the person who is connected with other job or business can do Forex trading as a part term business. I am doing long term trading in this largest decentralized market with an amazing STP broker. They allow all types trading techniques.

[Enobian]

Thanks for the similar and necessary information.

[Ben Thompson]

Indicators are the most important part in forex trading  by using indicators traders can get some ideas on market forecast but traders need a reliable broker like FreshForex which provides the best opportunities and offers for the traders. Hence, it also provides the lower spreads, narrow margin levels, and free online educational course.

[e_abrams]

Personally, I just use Moving Average and Bollinger Bands.

[gds221]

Quite a useful article that will be really useful to many traders.

[Vaabum]

In general, I try to use indicators to a minimum and trade manually, work on my knowledge.

[FXOpen Trader]

On 11/21/2021 at 4:04 PM, Vaabum said:

In general, I try to use indicators to a minimum and trade manually, work on my knowledge.

If we will start making the Efforts then our income from this business will Increase in the coming days.

[Vaabum]

To be honest, I try to use indicators as rarely as possible.

[FXOpen Trader]

On 11/23/2021 at 8:05 PM, Vaabum said:

To be honest, I try to use indicators as rarely as possible.

We will need to make use of a Trading system that is easy to understand and use by us.

[Vaabum]

I think you need to be careful with indicators. It is important to understand what this can lead to.

[FXOpen Trader]

On 3/21/2022 at 11:29 PM, Vaabum said:

I think you need to be careful with indicators. It is important to understand what this can lead to.

We can start using such types of technical indicators that will give us more income.

[Vaabum]

4 hours ago, FXOpen Trader said:

We can start using such types of technical indicators that will give us more income.

I think that in certain situations this can be a good option for traders.