Using a forex trading platform isn’t as easy as reading signals and pushing buttons. Forex trading requires paying lots of attention to economic indicators around the globe to ensure the stability and success of your account.
Typically, the most substantial news for FX trading comes from key financial institutions who regulate major currencies. But certain smaller indicators exist as well that aid more in future projections. One such indicator involves retail sales.
Retail Sales is an estimate of the total sales of retailers in the United States each month.

Forex Trading Significance

The US Department of Commerce releases this information every month for the proceeding month. The data is not adjusted to reflect inflation, but different periods are adjusted to show their significance, such as seasonal and holiday shopping. An intelligent forex broker will check this report for data indicating a swing in US currency.
A random sample of retailers provides receipts that comprise the data in the report. The report breaks down the information into dollars earned and as a percentage that compares the current month with previous ones. The different categories of goods purchased are also separated for further analysis. One important aspect to investigate for FX trading is the data that excludes automobile sales, as they tend to vary in price and month-to-month sales thus skewing the numbers.
The Retail Sales Report is important for updating the reader which items are selling better than others, but it fails to provide data accounting for inflation. It also is inefficient in accurately providing details regarding goods with volatile prices, such as gasoline. But it still is one of the most important indicators of economic stability and a crucial source for successful forex trading.