Inflation is important only when there is some trend appears or drastic changes month to month. Inflation as CPI and PPI is just another side of Growth, that’s why it’s also important. Pipruit: Ok, I’ve got it with major data, but what about the minor? Commander in Pips: Well, probably we might say that different indexes – such as Sentiment, PMI or ISM could lead to significant moves on the market. Mostly it could come from PMI and ISM, since PMI is earliest among them to release, while Sentiment indexes have some lag. Still, they are volatile but you need a really big different from expectations to get significant move on the market. Another data that could be important when strongly different from expectations is real estate data – New Home starts, building permits and other, but these data are still minor, compared to major data. And can you tell me which country's data is most important? Pipruit: I think I will not be mistaken if I say that this is the US, because the US has the largest economy, USD is participant of 90% of all transactions on Forex and USD is also a world reserve currency. Commander in Pips: Sound logical. Here is small add-on – geopolitical events, wars, disasters (remember 10 grade Earthquake in Japan and what has become with the JPY) and elections could make impact on the forex market also. It could be a bit spread in time, but you have to keep an eye on them still. Now another question – what pairs should we trade? Pipruit: Since our trade will be mostly short-term, we need liquidity. So, they should be major pairs, I suppose. Also it will depend on country which particular news we intend to trade. Commander in Pips: Right you are. P.S. This lesson was written by Sive Morten, who has been working for a large European Bank since April of 2000, and is currently a supervisor of the bank's risk assessment department. Sive's knowledge of forex market and banking industry is vast and quite complete. If you have any specific questions about forex, banking industry, or any other financial instruments, please post them on the next page and Sive should answer soon. Note: FPA ranks are earned in the battles against scam, not in the classroom.