The unemployment rate is a measure of the strength of the labor
market. One of the ways analysts gauge the strength of an economy is by
the number of jobs created, and the percentage of workers unable to find
jobs. Strong job creation is indicative of economic growth, as
companies must increase their workforce in order to meet demand.
EURUSD M5: 46 pips price movement by USD - Non-Farm Employment Change news event:
The Federal Open Market sets the discount rate, which is the rate at
which the Federal Reserve Bank charges member banks for overnight loans.
The rate is set during the FOMC meetings by the regional banks and the
Federal Reserve Board.
EURUSD M5: 42 pips price movement by USD - Federal Funds Rate news event:
The balance of trade measures the difference between the value of goods and services that a nation exports and the value of goods and services that it imports. A trade surplus results if the value of exported goods exceeds that of imported goods, whereas a trade deficit exists if imported goods exceed exported goods.
4. CPI - Consumer Price IndexThe CPI is a key gauge of inflation, as it measures the price of a fixed basket of consumer goods. Higher prices are considered negative for an economy, but since central banks often respond to price inflation by raising interest rates, currencies sometimes respond positively to reports of higher inflation.
5. Retail SalesRetail sales is a measure of the total goods sold by a sampling of retail stores. It is used as a gauge of consumer activity and confidence as higher sales figures would indicate increased economic activity.
