Following economic data gives you an outlook of the general market direction
Smart traders know that economic indicators can give them a general outlook on the market's direction. Information concerning the health of the economy such as GDP, home sales, employment, and consumer spending give investors knowledge that helps them plan their strategy accordingly.
US Census Bureau
Monthly the US Census Bureau releases a wide range of statistic data concerning consumer spending, estimated GDP and others. Experienced traders know that this information usually has a strong effect on markets, especially on equity and derivative ones and do not miss its release.
US Bureau of Labor Statistics
Traders also closely watch data coming from the US Bureau of Labor Statistics. Some of these indicators include employment, producer prices and productivity. Following broad indicators is important as Investors know that a monthly drop in GDP growth will sometimes lead to broad selling, this way bringing indices like S&P 500 and Dow Jones lower.
The U.S. Department of Commerce also releases important market information that includes retail sales, personal income and balance of trade. Still, when new economic indicator information is released the volatility it could cause on the market could also bring high-risk conditions for trading along with it and that is why planning carefully your strategy is of major importance.
Economic indicators are a good tool for binary option traders with a strong instinct for market movement but they should know that a great number of other factors also affect market trends. However, a general outlook on the direction of the market is always useful for binary option traders who want to ensure that broad market forces work for them and their profit.