Forex encyclopedia

Real average weekly earnings is the market indicator used in fundamental analysis. It is expressed in absolute terms and represents an index in relation to the previous period. The index slightly influences movement of prices, therefore, it is considered supplementary and can act as supportive to such indicators of fundamental analysis as major interest rates or non-farm. Real average weekly earnings accounts for inflation and is calculated in relation to 1982, which was conditionally taken for benchmark. Thus, this fundamental indicator can be considered as the inflation figure, which is caused by increase in earnings. Also it can perform as the indicator of rate consolidation: if increment of major interest rates of Central Bank is expected, then increase of earnings can tell about growth of national currency rate. Publication of data is made simultaneously with publication of Consumer Price Index at 8:30 a.m of New York time, regularly in the middle of every month.

This consumer sentiment index represents results of survey of consumers, which is conducted by Michigan University. Questions touch upon confidence of citizens in economic conditions and prospects for the nearest future. Obtained figure throws light on respondents' sentiment and their intentions regarding spending money. Index is published twice a month. The fist one is the advance report announced in the end of the second week, usually on Friday. In two weeks final report is published. Publication time is 10:00 a.m EST (New York). Market respond to published data is minor. Index growth is favorable towards consolidation of national currency.