Definition – What does Economic Reports mean?
Economic reports refer to the public release of important data that reflects on the health of a nation’s economy. Economic reports contain many hard numbers that are used as indicators in the forex market. The release of these indicators helps to confirm (or disprove) the hypothesis of fundamental traders and also creates price action that creates trends for technical traders to work with.
Some closely watched economic reports include:
- Gross domestic product (GDP) numbers
- Trade balance
- Consumer confidence index
- Beige Book (U.S. dollar)
- Tankan survey (Japanese yen)
Economic reports are also known as economic releases.
ForexTerms explains Economic Reports
Economic reports are essential to both fundamental and technical traders. For fundamental traders, the figures within the reports tell them another bit of info that impacts their position. For technical traders, economic reports stir up the market and create more price action to crunch into trading models.
Countries make their economic reports around a set calendar, making it possible for traders to become “calendar traders.” These traders try to predict the contents of the release and trade ahead of the market reaction. Even for regular traders, the predictability of economic releases makes them excellent events to trade around.