United States Economic Analysis

Jeepson Trading have a unique method to determine the performance of an economy. This method is two form, firstly high level analysis which looks at the key indicators. And then, low level analysis which is an analysis of the indicators of the central bank’s focus area.

High Level Analysis

High Level Analysis (HLA) is the process of analysing the key indicators of an economy and determining the subsequent performance. The key indicators are as follows;

  • GDP Growth Rate
  • Unemployment Rate
  • Inflation Rate
  • Interest Rate
  • Balance of Trade
  • Government Debt to GDP

The individual performance of each indicator is analysed over a twelve month period to determine the the high level economic performance.

Central Bank

The Federal Reserve is the central bank of the united states who has a dual mandate to maintain price stability and achieve maximum sustainable employment.

At their previous meeting on November 8 they stated that the focus areas are the labour market and inflation. These can be monitored by reviewing the performance of the Significant Indicators (SIND).

Low Level Analysis

Jeepson Trading have identified the following SIND that are to be monitored for the low level analysis.

Labour

  • Non Farm Payrolls
  • ADP Non Farm Payrolls
  • Average Hourly Earnings

Inflation

  • Producer Prices Change
  • Core Inflation Rate
  • Inflation Rate Month on Month

Conclusion

High Level Analysis: strong economy with an improving outlook

Low Level Analysis: strong indicators with an improving outlook

BUY from the Support levels of Technical Analysis.