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A to Z Academy / 1. What are Financial Markets

7. What are the most important economic data? 

November 20, 2020 02:57

Economic Data and Economic Calendars?

Information that appears in the financial markets every day could possibly affect investors’ sentiments and market trend. Such economic data and information comes from different countries and large corporations.

This is either compiled and disclosed by different institutes or released by different government and central banks globally.

From the perspective of macroeconomics, all political and economic information feeds fall under the risk category of the finance markets. Information regarding fluctuations is desired by investors speedily, to understand the development of policy and key economic branches. This is how and why the economic calendar is produced.

Economic Calendar Events

The Economic calendar, in general, includes many events such as;

  • Announcements of economic data and central bank policies of different places
  • Speeches by high-ranking officials
  • The political development of different countries
  • Important meetings of international summits and their reports
  • Financial statements of large corporations

Economic data of various countries are regularly announced according to a scheduled timeline. Therefore, investors need to pay a lot of attention to newly released data, particularly any that may influence market trend: Such as Non-farm Payrolls of the US.

Related Tool: ZFX Economic Calendar 

Non-farm Payrolls of US

‘Non-farm’ refers to employment data of the nonfarm population. The data compiles newly-jobs added, unemployment rate and other relevant details of non-farm sectors. The data allow us to understand the situation of various industries in the US, including governmental departments, professional and commercial services, education and healthcare, hotel and leisure, retail and trade, financial services, construction, mining industry, manufacturing, medical, social welfare, transportations, and public services.

Non-farm Payrolls is one of the most important economic data indicators of the US, whose Bureau of Labor Statistics (BLS) announces the data at 8:30 a.m. Eastern Time on the first Friday of each month. The data reflects the current situation of US employment and the economy. As the global economic powerhouse, Non-farm Payrolls allows us to estimate the economic development of the US and even the world, as well as changes in the interest rate of central banks. As one of the leading indicators, investors in the marketplace pay attention to the release of data, as it could cause fluctuations in different markets.

When is economic data announced during the market?

The data are announced during the trading hours of European and American markets. This is the busiest time of transactions as all major banks and funds and larger institutes are trading with each other. This is also the time when greater fluctuations take place in stock, forex, bond, and commodity markets. In general, data of Non-farm Payrolls influence the trend of the USD. Due to the longer trading hours of the forex market, forex investors or speculators throughout the world usually pay more attention to data of Non-farm Payrolls.


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