Fundamental Sentiment Trading: Pre-News Trading (Part 3)


How To Determine Pre-news Sentiment?

  • PPI -> CPI: A high PPI will affect market sentiment towards a better CPI release.
  • Retail Sales -> GDP: Retail sales in emerging countries such as the US makes up about 2/3 of the market. If Retail Sales is good, then possibly we will see better GDP.
  • Unemployment, Jobless Claims, Unemployment rate, Consumer Confidence -> Retail Sales: If people are losing jobs, they will not have money to spend at the retail levels, therefore affecting the GDP as a whole.
  • Housing Data -> Durable Goods: Especially in the U.S., a higher housing data will have a positive effect on durable goods because more people buy new houses equals to more people buying new appliances.
  • ADP, Challenger’s Job Report, Index -> NFP: U.S. ADP has an impact on the expectation of NFP. Challenger’s Job Cuts report could affect unemployment rate, and index will confirm the demand for new jobs.
  • Housing Data -> Durable Goods: Purchasing Manager Index, such as UK Manufacturing PMI, U.S.’s ISM Manufacturing PMI, Canada’s IVEY PMI, all have an effect on the future GDP and the health of economy, and by looking at the employment component,


About Kelvin Ching

I'm a professional Forex trader and I have been trading for over 7 years. I was a series 3 broker and a registered CTA with the NFA, the main regulatory agency in the United States, and I have been involved at the highest levels in commodity trading. I also have a background in Information Technology, graphics design, and programming... I'm the co-founder of, a site dedicated to fundamental analysis and news trading.

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