Economic indicators are reports released by a government or private organization that detail a country’s economic performance. These reports directly measure different aspects of a country’s economic health, but remember that many factors and policies will affect a nation’s economic performance.
Economic reports are released at scheduled times, providing the market with an indication of whether a nation’s economy has improved or declined. The effects of an economic release are comparable to how earnings reports, SEC filings, and other releases may affect securities. In forex, as in the stock market, any deviation from the norm can cause large price and volume movements.
You may recognize some of these economic reports, such as the unemployment numbers, which are well-publicized. Others, like housing stats, receive less coverage. However, each indicator serves a particular purpose and can be useful.