US Economic Indicators Explained: NFP, CPI, GDP & Market Impact
US Economic Indicators Explained: How NFP, CPI, GDP & Inflation Move Markets
US economic indicators drive Forex, stocks, bonds, and crypto volatility worldwide. This guide explains the key indicators and shows how traders use NFP, CPI, PPI, GDP, and Building Permits to anticipate market moves.
- Labor, inflation, GDP, and housing data move USD and risk assets
- NFP impacts employment expectations and Fed policy
- CPI & PPI track inflation at consumer and producer levels
- GDP confirms overall economic growth
- Building Permits serve as a leading indicator
Table of Contents
- What Are US Economic Indicators?
- Why US Economic Data Moves Global Markets
- Non-Farm Payrolls (NFP)
- Consumer Price Index (CPI)
- Producer Price Index (PPI)
- GDP Growth Rate
- Building Permits & Housing Data
- Market Impact by Asset Class
- How Traders Use Economic Indicators
- Frequently Asked Questions
What Are US Economic Indicators?
US economic indicators measure the health and direction of the economy. They are categorized as leading, coincident, or lagging. These numbers influence Fed decisions and global markets. See Federal Reserve responses to data.
Why US Economic Data Moves Global Markets
Markets move on expectations vs actual releases. NFP, CPI, and GDP create instant price reactions. Learn more in Forex volatility patterns.
Non-Farm Payrolls (NFP)
NFP tracks monthly US employment, excluding agriculture. Strong NFP strengthens USD; weak NFP causes volatility. NFP trends affect Building Permits and CPI inflation.
Consumer Price Index (CPI)
CPI measures consumer inflation; Core CPI excludes food & energy. Rising CPI pressures interest rates and USD; falling CPI supports risk assets. CPI impacts housing: Building Permits.
Producer Price Index (PPI)
PPI measures producer-level inflation and often leads CPI. Rising PPI suggests future consumer inflation. Learn the macro link: HUB Article.
GDP Growth Rate
GDP measures total US output. Employment, inflation, and housing feed into GDP. See detailed analysis: GDP Growth Rate SPOKE.
Building Permits & Housing Data
Building Permits measure new construction approvals. Sensitive to NFP trends and CPI-driven interest rates, they act as a leading indicator. More: Housing SPOKE.
Market Impact by Asset Class
- Forex: USD pairs spike on surprises
- Stocks: Cyclicals respond to GDP & CPI
- Crypto: Risk-on/risk-off moves with NFP & inflation
- Bonds: Yields react instantly to inflation & labor data
How Traders Use Economic Indicators
- Pre-release positioning
- Post-news trade setups
- Confirm NFP with CPI/PPI & Housing
- Combine fundamentals with technical analysis
Frequently Asked Questions
What is the most important US economic indicator?
NFP and CPI because they drive Fed expectations and market volatility.
How does housing data confirm NFP trends?
Building Permits rise when employment growth supports household formation.
Non-Farm Payrolls (NFP)
NFP measures US monthly job creation excluding agriculture. It impacts CPI, Housing, and GDP.
Consumer Price Index (CPI)
CPI tracks inflation at the consumer level, influencing Housing, NFP, and GDP.
Producer Price Index (PPI)
PPI measures inflation at the producer level and leads CPI, affecting CPI, NFP, and GDP.
GDP Growth Rate
GDP measures US economic output. Influenced by NFP, CPI, PPI, and Housing.
Building Permits & Housing Data
Housing is a leading indicator, linked to NFP, CPI, and GDP.
Analytic Dave
AnalyticalDave is a personal financial analysis portfolio that captures my Derivatives trading, stock, and investing journey. My portfolio does NOT act as a financial advisor to any community. It is only purposed for journaling my story as a self-taught trader and investor.
