Essay on Economic News and The Impact of Trading on Bond Prices

Economic indicators trail some activity that is judged noteworthy to economic performance, by quantifying the various factors of supply and demand. Indicators can be used to both explain and to forecast price movement. To explain market prices, variables are measured concurrently with that price and are assumed to have high correlation.

To forecast market prices, data from each indicator are viewed in relation to past data/price correlations, to data from other indicators and to the business cycle. Depending on the phase of the business cycle, different economic indicators are more or less able to delineate the pertinent market forces.

Keep in mind forecasts are as strong as the data used to make them. No matter how accurate the estimates may be much fundamental data is based on samples. In addition, these estimates are usually subject to constant revision.
Economic indicators can also be categorized as Leading Indicators, Lagging Indicators, or Coincident Indicators depending on whether changes in the indicator series happen before, after, or at the same time as changes in the economy.
These categorizations can even be different depending on the phase of the business cycle. For example, a series tracking the number of people unemployed is categorized as leading for peaks, lagging for troughs, and unpredictable for turns. The series tracking corporate net cash flow, on the other hand, is categorized as leading for peaks, troughs, and turns.

Market Impact of Economic Indicators with respect to indicator type and market consensus market consensus: stronger or larger than expected weaker or smaller than expected, type of indicator: business conditions inflation business conditions inflation, bond prices up prices down prices down, prices up stock index prices up prices down prices down prices up $ exchange rate prices up prices up prices down prices down...................

ESSAY ON THE AMERICAS