Event Jargon
23 articles
A practical guide to the economic indicators and events that move the forex market: what they are, why they matter and how to read them. One term per post, explained for traders.
Forecast vs Previous vs Actual: How Do You Read the Economic Calendar?
Previous, forecast, actual — and a colored impact dot. What does each number on the economic calendar mean, and why is the 'surprise' (actual vs forecast) the one that moves price?
How do you trade economic calendar news (without getting your stop hunted)?
Most people lose on news by trying to guess the direction. The key isn't the number — it's the surprise. A practical guide for beginners.
Priced in: why does the market's reaction beat the number?
Good data, falling price? Markets trade the surprise, not the number. How 'priced in', 'buy the rumor' and the reaction itself reveal what a release really means.
How Do You Trade a High-Impact Release Without Getting Whipsawed?
The headline hits and price explodes both ways before it trends. How to survive the first minute of a major release: spreads, the spike trap, and the second move.
What is inflation?
Inflation is the rate at which prices rise and money loses value — and the single biggest driver of the central bank decisions that move every currency pair.
What is the Consumer Price Index (CPI)?
The Consumer Price Index (CPI) is a key economic indicator that measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods…
What are Non-Farm Payrolls (NFP)?
The Non-Farm Payrolls (NFP) report is a crucial monthly economic indicator released by the U.S. Department of Labor, measuring the total number of paid employees in the U.S…
What is the Unemployment Rate?
The Unemployment Rate measures the percentage of the total labor force that is out of work but actively seeking a job, giving a snapshot of labor-market health and the broader…
What is the FOMC rate decision (Federal Open Market Committee)?
The Federal Open Market Committee (FOMC) is the monetary policymaking body of the U.S. central bank, the Federal Reserve. Its "Rate Decision" is the highly anticipated…
What is the Purchasing Managers Index (PMI)?
The Purchasing Managers Index (PMI) is a monthly economic indicator built from surveys of purchasing managers in a country's manufacturing and services sectors, tracking new orders, production, inventories, supplier deliveries,…
What is the Gross Domestic Product (GDP)?
Gross Domestic Product (GDP) is the total monetary value of all finished goods and services produced within a country's borders in a period — usually a quarter or a year.…
What are the consumer confidence indexes (Michigan and Conference Board)?
Two monthly surveys ask American households how they feel about the economy. One of them carries the inflation-expectations number the Federal Reserve reads most closely.
What is the S&P 500?
The S&P 500 tracks 500 of the largest US companies and is the market’s main gauge of risk appetite — which is why forex traders watch it even though it is a stock index.
What is the Nikkei 225?
The Nikkei 225 is Japan's benchmark stock index — the 225 biggest companies on the Tokyo Stock Exchange, and a live read on the yen that every forex trader should know.
What are retail sales?
Retail Sales measures the total revenue generated by all retail stores in a country over a specific period, typically a month. It includes sales of goods like cars, clothes, food…
What are Initial Jobless Claims (IJC)?
Initial Jobless Claims (IJC) is a crucial weekly economic report that tallies the number of individuals who filed for state unemployment benefits for the first time during the…
What is the PCE price index, and why does the Fed target it?
The PCE price index is the measure the Fed's 2% inflation goal is written in. What does it count, how is core PCE different, and why can it move the dollar after CPI?
What is the PPI (Producer Price Index)?
The Producer Price Index measures inflation at the factory gate. What does it count, how does it differ from CPI, and when does a PPI surprise move the dollar?
