YoY vs MoM changes

Discussion in 'Forex Trading' started by tschmidt1234, Jun 14, 2008.

  1. Here's a simple question that a good trader might be able to answer for me.

    <B>What has more impact on the market, a change in month over month (MoM) economic data, or a change in year over year (YoY)?</B>

    At first glance it seems like YoY, since that is a longer time period and would represent a more drastic change in the economy as a whole, but I could use some clarification. Any takers?

    Thanks
     
  2. Year on year I would say, but comparing months (if that makes any sense!)
     
  3. a better question would be, "is there any strong correlation between economic indicators and the stock market."

    Many statistical studies, when adjusted for various biases (i.e. lookahead), show very little correlation.

    http://www.cxoadvisory.com/blog/internal/blog4-16-07/
     
  4. Or an even better question (seeing as we're in a forex trading forum) would be "is there any strong correlation between economic indicators and the currency market", and the answer would have to be yes, there is, they're one of the main driving forces :p