THE COMPLETE 2020 GUIDE TO EVALUATE LEADING ECONOMIC INDICATORS

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THE LEADING ECONOMIC INDICATORS

• THE COMPLETE 2020 GUIDE TO EVALUATE LEADING
  ECONOMIC INDICATORS

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Introduction

• Since the foreign exchange market has economic
  principles as its guiding light, it is only
  fitting that we apply them during trading
  decisions as well. Economists usually group
  macroeconomic statistics in one of three
  categories leading, lagging, or coincident. In
  terms of the forex market and this article, in
  particular, we shall touch base on what the
  leading indicators for economic growth are.

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What makes up the leading economic index?

• The index for leading economic indicators has
  been created by the US Conference Board as a part
  of a greater and grander analytic system that
  aims to show inflection points in economic
  growth. In a nutshell, it was made with the
  intention to summarise future economic
  performance through its goal is showing
  inflection points in economic data. This is
  particularly useful if you want to get a feel as
  to where the economy is gearing to turn to.
• For those that are unfamiliar with the leading
  economic index, all the readily available
  information may tend to be overwhelming. To help
  break it down for you, we have listed all of its
  parts so that you know which elements to look out
  for next time
• Average consumer expectations for business
  conditions
• Average weekly initial claims for unemployment
  insurance
• Interest rate spread, 10-year Treasury bonds less
  federal funds
• Average weekly hours, manufacturing
• Leading Credit Index
• ISM Index of New Orders
• Stock Prices
• Building permits, new private housing units
• Manufacturers new orders, nondefense capital
  goods excluding aircraft orders
• Manufacturers new orders, consumer goods, and
  materials.

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How should you use the Leading Economic
Indicators for trading?

• The leading economic index features 10
  subcomponents that you may gauge before they are
  even released. Similar to any other economic data
  that is consistently released, having the leading
  economic index in your toolbox can present you
  with many opportunities. Since some of the 10
  subcomponents can be analysed by veteran analysts
  in advance, you will not be getting any sudden
  surprises.
• If you know what to look for in the leading
  economic index, then you are well on your way to
  mastering this index to make even better trades!
• LEARN TO MAKE FROM PROFITS FROM LEADING ECONOMIC
  INDICATORS

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Thank you.