Useful Tips

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Useful Tips

UNDERSTANDING ECONOMIC DATA 
You have to know what each piece of data is and tells to perform basic analysis based on the incoming data.
ISM MANUFACTURING PURCHASING MANAGERS' INDEX: According to this piece of data indicating the purchasing tendency of major companies in the manufacturing industry of a country, the points above 50 are considered positive, and the points below 50 are considered negative for economic growth.
ISM NON-MANUFACTURING PURCHASING MANAGERS' INDEX: According to this piece of data indicating the purchasing tendency of major companies in the service industry of a country, the points above 50 are considered positive, and the points below 50 are considered negative for economic growth.

ADP NONFARM EMPLOYMENT CHANGE: The national employment report, this piece of data is announced before the official Non-Agricultural Employment data and shows the number of permanent employees with a payroll. Therefore it is considered preliminary data for Non-agricultural Employment.
NON-AGRICULTURAL EMPLOYMENT: This piece of data indicates the number of employees except for the agricultural industry in a country, and the reason for omitting the agricultural industry is that seasonal volatility hinders reliable results. The increase in the employment data is positive because it supports the national economy, and it causes USD to appreciate. It is among the data closely followed by Fed in making its interest policy.
UNEMPLOYMENT RATE: The monthly rate of the unemployed and job-seekers in a country. A decline in unemployment is considered a positive development since it indicates a fall in the number of the unemployed in the country.
AVERAGE HOURLY RATES: It defines the inflation rate in the wages paid to employees except for those in the agriculture industry, and an increase in this piece of data is positive for the national economy.
APPLICATIONS FOR UNEMPLOYMENT PAY: The number of citizens applying for unemployment pay for the first time. A decline in this weekly data is considered positive since it means that the number of job holders increased. If the number of applicants for unemployment pay for the first time is considered negative since it means that the number of the unemployed increased.
CPI: CPI is one of the components of the inflation which is defined as the continuous increase of the overall level of prices. Since it is impossible to measure the prices of all goods and services produced in a country, CPI follows the change in the prices of goods and services most frequently included in household budgets, and it is used to measure the change in inflation.


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