![]() ![]() This is a US report.ĬoT – Each Friday, the CFTC ( US Commodity Futures Trading Commission) reports the CoT ( Commitment of Traders) report. NFP stands for “Non-Farm Payrolls” and is reported together with the average hourly earnings and the unemployment rate on the first Friday each month. NFP – Besides inflation reports, labour market statistics also have a large market-moving effect. Since producers often try to “push” any increased costs in the manufacturing production to the end consumer, traders sometimes try to anticipate the CPI number by following PPI reports. ![]() While CPI measures the change in retail prices, PPI reflects changes in prices of intermediary goods in the manufacturing process. PPI – This stands for Producer Price Index. The CPI shows the increase in prices of goods and services over a specific period of time.Ĭore CPI – The Core CPI report is quite similar to the CPI report, only that it excludes the volatile categories of food and energy in its calculation. It represents the inflation rate in a country that most major central banks follow when adjusting their monetary policy. Read: Top 5 Economic Indicators of the Forex Market You Must KnowĬPI – The CPI report (Consumer Price Index) is a very important market indicator in Forex. The GDP measures the total value of a country’s output, including goods and services, over a specific period of time (usually one year.) A rising GDP can lead to interest rate hikes by a central bank, which in turn pushes the country’s currency higher. GDP – The Gross Domestic Product, or GDP, is the broadest market indicator available for a country. Whenever we trade a currency, we have to pair it with another currency which forms a currency pair. Learn more, take our free course: Understanding BrokersīC/CC – Currencies can’t be traded in isolation.The stock market, on the other hand, is not an OTC market as stocks are traded on a stock exchange. Instead, currencies are directed directly between two parties, usually with the intermediation of a financial institution such as a bank or broker. OTC – OTC stands for “over-the-counter.” The Forex market is an OTC market, as there are no centralised exchanges at which currencies are traded. Some sources abbreviate Forex even shorter as “FX”. General acronymsįX – The term Forex is an abbreviation of the foreign exchange market – the world’s largest financial market and the marketplace of currencies. You’ll quickly grasp and fully understand the abbreviations. Take your time and read through the following article a couple of times. These range from macro-fundamentals and central banks to currencies and technical terms.ĭon’t worry though if you don’t remember them all at once. Here’s a list of the most common abbreviations and acronyms you may stumble upon while trading or reading online analyses. The Forex market has many abbreviations and acronyms that might seem intimidating to beginners. ![]()
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