[mankeyinc]

G'day,

I'd like to know what the MoM/YoY really affect in the forex market. From my understanding it's some sort of index measuring something which comes out every month for every country? Does it also create liquidity in the forex market when the news comes out? like the FOMC, NoN Farm and ISM.... I would appreciate it also if you can explain the importance of those also. I'm sure it'll be helpful to include some fundamental into all the technicals video you provide sir. Thanks!

Regards,
Jays

[David Waring]

G'day,

I'd like to know what the MoM/YoY really affect in the forex market. From my understanding it's some sort of index measuring something which comes out every month for every country? Does it also create liquidity in the forex market when the news comes out? like the FOMC, NoN Farm and ISM.... I would appreciate it also if you can explain the importance of those also. I'm sure it'll be helpful to include some fundamental into all the technicals video you provide sir. Thanks!

Regards,
Jays

Hi Jays,

Thanks for the question.

MOM is short for Month Over Month and YOY is short for Year Over Year. These abbreviations do not represent data by themselves but are included with other pieces of economic data that come out to show how much of an increase or decrease the number represents over last months number (MOM) and how much of an increase or decrease the number represents over the number for the same time period last year (YOY).

So basically the MOM and YOY component of an economic release is meant to put the number into perspective by comparing it to 2 different time periods.

The FOMC stands for the Federal Open Market Committee. This is made up of the 12 voting members of the US Federal Reserve who set interest rates for the United States. From a fundamental standpoint interest rates are probably the most important piece of financial data there is in terms of the effect they have on pretty much every market from the stock market to the currency market.

Below is a link with a more detailed explanation of exactly how the FOMC works:

The FOMC and its Impact on Monetary Policy - InvestorGuide University


The Monthly Non Farm Payroll Number is designed to gauge the increase or decrease in the labor market each month minus volatile sectors such as the farming industry which hire then fire a lot of employees depending on the season. The reason why this number is so important is because it is one of the best gauges of the health of the US economy and therefore has a wide effect on all markets relating to the US economy.

Below is a link with more detailed information on Non Farm Payrolls:

Yahoo! Briefing Economic Calendar Terms


The ISM or Institute for Supply Management report is a survey which is done monthly and is basically a survey of professionals involved in the service sector of the US economy. So the report is important because it is meant to give a gauge on the health of the service sector which is the largest part of the US economy.

You can read more about the ISM report here:

Economic Indicators: Non-Manufacturing Report

My plan as of now is to finish off the section on technical analysis and then move on to fundamentals so there will be more to come on all of these topics shortly.

If anyone else has any input on these please feel free to post it below and let me know if there are any other questions.

Best Regards,
David

[mankeyinc]

Thanks that was really some useful information

Regards,
mankeyinc / jays

[David Waring]

Originally Posted by mankeyinc

Thanks that was really some useful information

Regards,
mankeyinc / jays

My pleasure, I am anxious to get this section of the site moving so if there are any other questions please fire away.

Best, Dave