News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bearish
Wall Street
Bearish
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • $Gold came close, just couldn't take out that Oct high yday. Question for today - will Gold bulls defend support? TL projection + 1900 just below $GLD $XAUUSD https://t.co/aVRF811ibG https://t.co/Z0a8suyJFJ
  • US House Speaker Pelosi says will soon be ready to put pen to paper on stimulus bill
  • 🇺🇸 Initial Jobless Claims (17/OCT) Actual: 787K Expected: 860K Previous: 898K https://www.dailyfx.com/economic-calendar#2020-10-22
  • 🇺🇸 Jobless Claims 4-Week Average (17/OCT) Actual: 811.25K Previous: 866.25K https://www.dailyfx.com/economic-calendar#2020-10-22
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.61%, while traders in EUR/USD are at opposite extremes with 74.90%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/sY3dTjuO9F
  • Technical indicators are chart analysis tools that can help traders better understand and act on price movement. Learn more about the importance of technical analysis here: https://t.co/NpC1D8y4Aa https://t.co/JJg25hAgDO
  • Forex Update: As of 12:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.16% 🇯🇵JPY: -0.07% 🇨🇦CAD: -0.14% 🇦🇺AUD: -0.21% 🇪🇺EUR: -0.33% 🇬🇧GBP: -0.41% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/BZxN8uc0fV
  • Heads Up:🇺🇸 Initial Jobless Claims (17/OCT) due at 12:30 GMT (15min) Expected: 860K Previous: 898K https://www.dailyfx.com/economic-calendar#2020-10-22
  • Heads Up:🇺🇸 Continuing Jobless Claims (10/OCT) due at 12:30 GMT (15min) Expected: 9500K Previous: 10018K https://www.dailyfx.com/economic-calendar#2020-10-22
  • Heads Up:🇺🇸 Jobless Claims 4-Week Average (17/OCT) due at 12:30 GMT (15min) Previous: 866.25K https://www.dailyfx.com/economic-calendar#2020-10-22
US National Activity Index Shows Growth with Tailwinds from Trade Ahead

US National Activity Index Shows Growth with Tailwinds from Trade Ahead

2018-05-21 16:57:00
Peter Hanks, Analyst
Share:

Talking Points:

  • Fifty of the eighty-five economic indicators made positive contributions in April
  • Production related indicators contributed with a bump to 0.27 for the index, up from 0.19
  • The seemingly resolved US-China trade war has dominated headlines and market action

Learn the number one mistake traders make when trading. Download our Traits of Successful Traders Guide in the Beginner section of the DailyFX Trading Guides page.

The Chicago Fed’s US-based National Activity Index came in at 0.34 for April, beating March’s reading of 0.32. The economic enthusiasm this infers has furthered optimism in US capital markets and the Dollar recently spurred by a ‘pause’ on the China trade war and steady rise in Fed rate forecasts. The index is made up of the weighted average of 85 economic indicators, with positive growth listed as anything above 0.0. Readings below 0.0 are considered a sign of contraction and a three month average of readings below negative 0.70 signals a recession. In April, 50 of the 85 indicators made positive contributions with production-related indicators, namely factories, leading the way.

The positive contributions made by factories for the month of April rose to 0.27, an increase from the 0.19 contributed by the indicator in March. Similarly, employment-related indicators added to their contributions in April, rising to 0.10 from 0.04. The rise in the employment-related indicator trails the data released by the Labor Department earlier this month revealing 3.9% unemployment, the lowest in 17-years. Meanwhile, a key negative contributor was the personal consumption and housing category, dropping to negative -0.05 from 0.02 as construction on new homes dropped 3.7% in April.

Although the index delivered a positive message for markets, the tentative resolution of the US-China trade war dominated markets and drove them higher in the early hours of trading. Should the resolution hold, the trade talks will provide meaningful action for the index in the coming months, as increased factory production was a headline goal set out by the Trump administration. Similarly, renewed or increased trade from the resolution will aid the index in other indicators.

US National Activity Index Shows Growth with Tailwinds from Trade Ahead

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES