Forex encyclopedia

In the United States of America services on operations with finance derivatives with such base asset as the currency quote obtained in the results of trades on FOREX interbank exchange market are mainly rendered by futures brokers with the futures commission merchant (FCM) license and retail FOREX dealers with retail foreign exchange dealer license (RFED). In the USA historically developed distribution of regulation spheres takes place. Under this model, futures market mainly falls under the competence of Commodity Futures Trading Commission (CFTC) and Self-regulatory organization - National Futures Association (NFA). Futures commission merchants and etail foreign exchange dealers acquire CFTC license and also enroll NFA self-regulatory organization. Regulating agencies set minimum amount threshold of company's proprietary funds, which by today amounts to at least 22 mln US dollars.
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.
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