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4 key economic Indicators every trader should watch

November 19, 2022
/
Steve T.
As a trader, it's important to have a firm understanding of the major economic indicators that can move the markets. While there are many indicators that traders can choose to focus on, we've compiled a list of four key indicators that we believe every trader should watch. 

1. Gross Domestic Product (GDP) 

GDP is perhaps the most closely watched of all the economic indicators. GDP is a measure of the total value of all goods and services produced in an economy over a specific period of time, usually quarterly or annually. GDP growth is used as a gauge of an economy's health and as a predictor of future market performance. 

2. Consumer Price Index (CPI) 

The CPI is another important indicator for traders to watch. The CPI measures the change in prices paid by consumers for a basket of goods and services. CPI is used as a gauge of inflationary pressures in an economy and can have a big impact on financial markets. 

3. Non-Farm Payrolls (NFP) 

NFP is one of the most highly anticipated economic indicators each month. NFP measures the change in the number of people employed in the U.S. economy, excluding farm workers, government employees, and private household employees. NFP is closely watched because it provides insight into the strength of the labor market and can be used as a predictor of future economic activity. 

4. Federal Open Market Committee (FOMC) 

The FOMC is the policy-making arm of the Federal Reserve System and meets eight times per year to discuss monetary policy options. Traders pay close attention to FOMC meetings because changes in monetary policy can have a big impact on financial markets.