Forex Trading Using Intermarket Analysis

Consumer Price index (CPi) and Producer Price index (PPi). 
Mention inflation rates, and traders usually think of the CPI or PPI, 
which measure price levels of various goods and services against lev-
els that existed during a base period. These reports are usually con-
sidered to be the best gauges of inflation. However, some analysts do 
not put a lot of credence in these numbers because they exclude prices 
for fuel or food, which may vacillate wildly due to weather or other cir-
cumstances and often comprise a large portion of consumer budgets. 
Consumer Confidence.
Consumer spending accounts for about 
two-thirds of the U.S. economy so what the consumer is thinking 
is vital information to forex traders because of the impact on many 
other economic reports. Consumer sentiment surveys are conducted 
regularly by the Conference Board, University of Michigan, and others 
to get a reading on consumer attitudes about the economic outlook.
retail sales.
 One area that may be affected directly by consumer sen-
timent is sales by retailers, especially at critical times of the year such 
as the Christmas holiday season. At these times, analysts pay particu-
lar attention to same-store sales for comparisons with previous years.

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Housing starts and new and existing Home sales.
These 
reports provide another gauge of consumers’ willingness to spend and 
the increasingly significant effect that housing has on the economy. 
People have to feel pretty comfortable and confident in their financial 
position to buy a home. More housing means more demand for raw 
materials such as lumber or copper and for appliances and all the 
other items needed to build and maintain a home. Sales of all those 
items affect economic growth and, in turn, the course of the U.S. dollar.