Economy of any country operates in a complex way as it involves many different activities that have complex relationships and affect each other in an intimate manner. Forex market is highly influenced by the economic developments around the world. This is because the currency that is unique to a particular country is affected by both the economy of that country and other countries that are connected to it.

When the traders are investing in the currency market, they are required to keep a track of economic news that occurs across the globe to trade better. Forex traders frequently use economic indicators to measure the economic state of a country. US dollar is one of the major currencies that are traded in the foreign exchange market. If you are interested in the US economy, here are some economic indicators from the US that you need to keep your eyes on.

Gross Domestic Product or GDP is the most basic and traditional gauge that is used to measure the strength of any economy. GDP is the economic output of a country i.e. the total value of all goods and services that is produced a country in a particular year. GDP is the sum of consumption, investment, government expenditure and net exports.

The real GDP, unlike nominal GDP, accounts for inflation and helps in comparing economic output between different years. The Bureau of Economic analysis (BEA) calculates the GDP for the United States. The calculation is done for every quarter and every year. Three estimates of these societal outputs are released by BEA. Traders can visit BEA website can obtain the schedule of estimates.

Consumer Price Index
CPI or consumer price index is the yardstick of inflation and the statistics are released by the US department of Labor’s. The Bureau of Labor Statistics is released every month and year based on a market and the basket of goods and services. Traders can the measure cost of living using this indicator. This indicator also shows how goods and services become expensive over a period of time.

Factors like food, medical expenses, transportation, housing expenses, education, clothing and miscellaneous expenses are used to derive the CPI. Data of over 80,000 items are collected every month through different establishments. This information is put into index after the specialist of the agency has analysed the data and ensured stability of the information.

Current Employment statistics
The Bureau of Labor Statistics collects and analyses the information on employment, earnings of those employed and working hours, this done by using a CES program. BLS contacts companies and government agencies to get the data for the regular surveys. Traders trading in the forex market can gain insight about the unemployment rate, average working week and hourly earnings.

Apart from the indicators mentioned above other indicators like Consumer Confidence Surveys, Personal Income and Outlays Report and Non-Farm Payrolls are also studied by the traders. These indicators play a very important role in analysing the currency market.