by Ntombi Malatsi | Oct 16, 2016 | ECONOMIC NEWS
The importance of Retail Sales and Core Retail Sales in Forex markets.
Retail sales
Retail sales are the change in total value of inflation adjusted sales at the retail level. Retail Sales are a gauge of consumer spending which accounts for the majority of overall spending. Retail sales usually correlates with the Non-Farm Payroll (NFP). When the number of people increases, the chances of getting a higher Retail and Core retail Sales becomes higher. Apparently big spenders are workers otherwise why would these two correlate? Retail Sales include in-store sales, catalogue and out-of store sales.
Core Retail Sales
Core retail sales exclude Automobile and gas sales. They are excluded due to their volatility. Core Retail Sales are also used to calculate GDP, developing Consumer Price Indexes and analyzing the current economic health of a country. Federal Reserve (Feds) also uses it to asses the consumer behavior. We had U.S Core Retail Sales on the 14th (last Friday). It increased by 0.1% from expected 0.4% to 0.5%.
Core Retail and Retail Sales that I follow
- U.K Retail and Core Retail Sales
- U.S Retail and Core Retail Sales
- Canada Retail and Core Retail Sales
by Ntombi Malatsi | Oct 16, 2016 | ECONOMIC NEWS
Economic news to watch this week.
by Ntombi Malatsi | Oct 9, 2016 | ECONOMIC NEWS
Recap from the previous week
UK Prime mister Theresa May announced last week that the UK will be invoking article 50 to start with the process of officially leaving the EU. The markets got jitters and the GBP crumbled and kicked many traders who were holding GBP pairs out of the markets. On another news the Manufacturing PMI rose up to 55.4 as opposed to 52.1 forecast. The U.S ISM Manufacturing PMI also rose to 51.5 from expected 50.4. RBA (Reserve Bank Of Australia) left their interest rates unchanged at 1.50%. Australia Retail Sales increased to 0.4% from 0.2% forecast. The U.S Job number (NFP) declined and came out at 156k as opposed to 171k forecast while the earnings remained unchanged at 0.2% and the unemployment rate increased by 1% from expected 4.9% to 5.0%. Below are the economic news to watch post NFP.
by Ntombi Malatsi | Oct 1, 2016 | ECONOMIC NEWS
Economic news to watch ahead of NFP.
by Ntombi Malatsi | Sep 25, 2016 | ECONOMIC NEWS
What is Consumer Price Index (CPI)?
I usually post a lot of updates/notifications on my FB wall regarding the CPI and Core CPI few minutes before the release. I love trading these economic events. I have been getting a lot of questions from traders who want to know what CPI and Core CPI is. I also get traders who ask if they should pay more attention to the CPI and Core CPI. I am not in a position to decide for anyone, I am however willing to share what I know and why did I opt for the method of trading that I use. You can can learn more about how I trade HERE.
Consumer Price Index (CPI)
CPI stands for Consumer Price Index. It is the most watched economic indicator. It is calculated/released by the Bureau of Labor Statistics, which is part of the Department of Labor.
What does CPI measure
It measures the change in price of goods and services purchased by the consumers excluding investment items such as stocks, bonds, real estates and life insurance. In short, CPI measures the cost of living. The CPI is released monthly.
Why do we (traders) care
The Consumer Price Index accounts for the majority of overall inflation. Inflation is important to currency evaluation.
What is Core CPI
Core CPI excludes the goods with high volatility such as food and energy. Core CPI is also used by the Federal Reserve to make decisions about the U.S Monetary Policy.
Which CPI’s and Core CPI’s do I follow
- United States CPI
- United Kingdom CPI
- Canada CPI
Below are the remaining dates for the upcoming CPI and Core CPI for the year 2016. Thank you for reading, please kindly share this post if you found it informative.
by Ntombi Malatsi | Sep 24, 2016 | ECONOMIC NEWS
Highlights from the previous week.
The Federal Reserve left the U.S Bank Rates unchanged at <0.50%. The RBNZ left their rates unchanged as well at 2:00%. The U.S unemployment claims decreased by 9k from expected 261k to 252k. On Friday the Canada Core CPI and Retail sales both got a negative print with Core CPI dropping from expected 0.2% to 0.0% while the Retail sales dropped from expected 0.5% to -0.1%. Below are the economic news to watch this week.
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