M1 money supply for United States covers the most liquid forms of money: currency in circulation, demand deposits, and other balances immediately convertible to cash. It is published monthly by the Federal Reserve or national statistics agency.
Why FX traders watch it
Rapid M1 growth can signal future inflationary pressures via the quantity theory of money. Conversely, shrinking M1 may indicate tightening monetary conditions, which reduces inflation risk but also slows economic activity.
How to interpret the data
M1 alone is rarely a primary FX catalyst, but sustained above-trend growth is a medium-term inflation risk and may increase rate-hike probability, supporting the usd. Contracting M1 is associated with tighter liquidity.
Historical Masse monétaire au sens étroit (M1) (USD)