This page is updated with information that can help expand your knowledge and assist you in trading OTC Forex and the various products available through IG Markets on Nadex.
Here we cover details of some of the more important economic reports of the day, including when they are released (times shown are the local time for the relevant economic area), what they mean and how they may affect the financial markets.
Visit us daily for the latest posting from the TradeSense databank (the complete databank resides in the client area of our website and contains a full list of reports for every economic indicator that we cover).
UK – BRC Retail Sales Monitor (6 Sept)
Released by: British Retail Consortium (monthly report)
Time: 00.01 (GMT)
What is it?
A report that summarises total and like-for-like sales figures compiled from a wide range of retailers that represents about 60% of UK retail sales value.
'Like-for-like' sales growth is the percentage change in the value of comparable store sales compared to the same period a year earlier.
Total sales growth is the percentage change in the value of all sales compared to the same period a year earlier.
The Monitor only measures the value of spending and consequently makes no adjustments for changes in price. If prices are rising, sales volumes will increase by less than sales values. In times of price deflation, sales volumes will increase by more than sales values.
The report also includes analysis of the information, stating opinions regarding consumer confidence, sales growth and notable trends by sector.
Why is it important?
Retail spending represents approximately one-third of consumer spending. This report can provide a useful guide to overall trends in retail spending (and hence some clues to consumer spending).
Australia - Reserve Bank Interest Rate Decision
Released by: Reserve Bank of Australia
Time: 14.30 (AEST)
What is it?
The Reserve Bank of Australia meets eleven times a year and is responsible for keeping inflation to the 2-3 per cent target band set by the bank’s own policy makers.
Why is it important?
The rate decision has a major impact on financial markets and affects mortgages, consumer loans and bond rates as well as the exchange rate of the Australian dollar. The bank’s responsibility is to maintain a healthy economy whilst keeping prices steady by adjusting the rate accordingly.
Rates hikes tend to result in the appreciation of the Australian dollar whilst the currency depreciates with rate decreases.
What are market expectations?
A poll of analysts by Bloomberg predicted a figure of 4.5% which remains unchanged from the previous month.
Japan - Leading Economic Index (July)
Released by: Economic and Social Research Institute (monthly)
Time: 14.00 (JST)
What is it?
This is an index compiled from 12 other major Japanese leading indices, such as inventory ratios, stock prices and machinery orders.
The index operates on a scale of 1-100, where anything higher than 50 indicates a majority of the component indices yielding a positive value, and anything lower than 50 indicates a majority showing negative values. The greater the distance from the midpoint, the more strongly positive negative the component indicators.
Why is it important?
Being a combination of so many leading indices, the Leading Economic Index provides a projection of the economy's future performance. The index is generally considered to provide a 6-9 month forecast.
What are market expectations?
Economists polled by Bloomberg showed a median forecast of 98.2, as compared with the previous figure of 99.
Japan - Coincident Index (July)
Released by: The Cabinet Office (quarterly)
Time: 14.00 (JST)
What is it?
It is a measure of economic activity in Japan based on a composite of indicators tracking current business conditions.
Why is it important?
It is a short and mid-term indication of the performance of the Japanese economy.
The index comprises of industrial production expansion or contraction, retail and wholesale sales, capacity utilization, non-scheduled work hours, power consumption, the job-offer rate and operating profits.
What are market expectations?
A survey of economists by Bloomberg showed a prediction of 101.8 from a previous figure of 101.3.
Japan - Rate Announcement
Released by: The Bank of Japan(monthly meeting)
What is it?
The Bank of Japan Policy Board meets every month for two days in order to discuss domestic and international economic developments and thus decide whether any changes to monetary policy or interest rates are required. This announcement reveals the result of the meeting.
Why is it important?
The rate agreed by the policy Board acts as a basis for every other Japanese rate and will have a strong effect on consumer loans, mortgages, bonds and the exchange rate of the Yen. The announcement contains statements regarding the Bank of Japan's views on the economy and therefore can provide an indication of future monetary policy decisions.
What are market expectations?
Analysts surveyed by Bloomberg agreed that the Japanese base rate will remain unchanged at 0.1%.
U.S. - ABC Consumer Confidence (5 Sept)
Released by: ABC News (weekly)
Time: 17.00 (EST)
What is it?
It is a measure of consumer sentiment towards the economy. Consumers are surveyed about their attitude to spending and financial situation.
Why is it important?
The figure tends to go hand-in-hand with wage or salary decreases and is usually an indication of a fall in spending.
Although the index is comparatively new and may tend to take a backseat when compared to more established indices, it does give a timely suggestion of what is to come.
The figure offers an insight into the general health of the economy, which investors, retailers and traders tend to keep an eye on.
What are market expectations?
A survey of economists by Bloomberg showed a prediction of -44 from a previous figure of -45.