Why Some Releases Do Not Make the List
There are many indicators that do not make the list even though traders think that they should. Industrial Production and the University of Michigan Consumer Confidence surveys are good examples. These indicators are usually released on days with many competing economic releases. Over the past 12 months, at least one indicator was released at the same time as industrial production every single month. As a result, the actual release holds less significance.
Decreasing Market Volatility
One final reason for the changes in rankings is the comparatively smaller daily trading range for the EUR/USD between June 2005 and 2006. In 2004, the average daily range for the EUR/USD was 111 pips. This has dropped to 104 pips over the past 12 months. Though the decline may seem small, it is more prominently reflected on those days when releases are due. When non-farm payrolls were at the head of the list in 2004, the average daily move of the EUR/USD on the back of the release was 193 pips. This compares to the 130 pip daily range for the ISM index, which tops this year's list. Contracting interest rate differentials around the world has also contracted market volatility.
Top Indicators As Of 2006 (Daily)
As Of (Daily) Avg. Range (pips)
1 ISM Manufacturing 130
2 Non-Farm Payrolls 115
3 Trade Balance 114
4 Personal Consumption 112
5 Inflation (CPI) 109
6 Empire Index 109
7 GDP 108
8 Philadelphia Fed Index 107
9 TICS 106
Conclusion
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