FOREX CSI

FOREX CSI

Characteristics of the U.S. Dollar

More than 90 percent of all currency deals involve the USD. Gold and USD tend to have inverse relationships.Market participants closely follow the U.S. Dollar Index as a gage to overall USD strength or weakness.
Economic Indicators for United States
Employment Consumer Price Index (CPI) Producers Price Index (PPI) Gross Domestic Product (GDP) International Trade Employment Cost Index (CPI) Institute of Supply Managers (Formerly NAPM) Industrial Production Consumer Confidence Retail Sales

Characteristics of the British Pound

GBP is very liquid.GBP has one of the highest interest rates among the developed countries.Interest rate differentials between Gilts and foreign bonds are closely followedEuro-sterling futures can give indications for interest rate movements. Comments on Euro by U.K. politicians affect the Euro. GBP has positive correlation with energy prices.
Economic Indicators for United Kingdom
Employment Situation Retail Price Index (RPIX) Gross Domestic Product (GDP) Industrial Production Purchasing Managers Index (PMI) U.K. Housing StartsConsumer Price Inflation (CPI)Producer Price Index (PPI)

Characteristics of the Euro

EUR/USD is the most liquid currency.Euro risks as a new currency.Spread between 10Yr U.S. Treasuries and 10YR Bunds can indicate Euro sentiment.Interest rate differentials are used to predict Euro area money flows.
Economic Indicators for the European Union
Gross Domestic Product (GDP) Individual Country Budget Deficits IFO Business Climate Survey Harmonized Index of Consumer Prices (HCIP) M3 (measure of monetary supply tracked by the New York Federal Reserve Bank and reported every Thursday) German Unemployment German Industrial ProductionConsumer Price Inflation (CPI)Producer Price Index (PPI)

Characteristics of the Australian dollar

Commodity-linked currency.Australia has one of highest interest rates among the developed countries. Interest rate differentials between the cash rates of Australia and the short-term Interest rate yields of other industrialized countries are closely followed.Severe weather conditions such as droughts negatively affect Australia's economy.
Economic Indicators for Australia
Gross Domestic Product (GDP) Consumer Price Inflation (CPI) Balance of Goods and Services Private Consumption Consumer Price Inflation (CPI)Producer Price Index (PPI)

Characteristics of the New Zealand dollar

Strong correlation with AUD. Commodity-linked currency.Carry trades.With the highest interest rate of the industrialized countries, the NZD has been one of the most popular currencies to buy for carry trades.Population Migration.
Economic Indicators for New Zealand
Gross Domestic Product (GDP) Consumer Price Index (CPI) Producer Price Index (PPI) Balance of Goods and Services Private Consumption

Characteristics of the Japanese Yen

Proxy for Asian Strength / Weakness.The Bank of Japan and Ministry of Finance are very active participants in the FX markets. JPY movements are sensitive to time: Fiscal year end, Japanese trading hours etc.Banking stocks are widely watched.Carry trade effects.
Economic Indicators for Japan
Gross Domestic Product Tankan Survey Balance of Payments Employment Industrial Production

Characteristics of the Swiss Franc

Safe Haven Status.Swiss Franc is correlated with gold.Carry trades effects.Interest rate differentials between Euro and Swiss futures and foreign interest rate futures are closely followed.Potential changes in banking regulations negatively weigh on CHF.Mergers and acquisitions are common in Switzerland's banking and insurance sectors.
Economic Indicators for Switzerland
Consumer Price Inflation (CPI)Producer Price Index (PPI)Gross Domestic Product (GDP) Balance of Payments M3 (measure of monetary supply tracked by the New York Federal Reserve Bank and reported every Thursday) Unemployment Production Index (Industrial Production)

Characteristics of the Canadian dollar

Commodity linked currency.The U.S. imports 85 percent of Canada's exports. The Canadian economy is highly sensitive to changes in the U.S. economy.Mergers and acquisitions between firms in the U.S. and Canada are very common.Interest rate differentials between the cash rates of Canada and the short-term interest rate yields of other industrialized countries are closely followed.When Canada has a higher interest rate than the U.S, the sell-USD, buy-CAD carry trade becomes more popular.
Economic Indicators for Canada
Unemployment Consumer Price Inflation (CPI)Producer Price Index (PPI)Gross Domestic Product (GDP) Balance of Trade Producer Price Index (PPI) Consumer Consumption