Fundamental analysis forex fundamental news calendar Forex is a type of market analysis which involves studying of the economic situation of countries to trade currencies more effectively. It gives information on how the big political and economical events influence currency market. Figures and statements given in speeches by important politicians and economists are known among the traders as economical announcements that have great impact on currency market moves.
But when news are due, traders have to check the actual data. If to look at oil prices, a rising price will result in weakening of currencies for countries which depend on huge oil import, e. Whose speeches to keep an eye on? Chairman of the Federal Reserve Bank of USA, Secretary of the Treasury, President of the Federal Reserve Bank of San Francisco and so on. Traditionally, if a country raises its interest rates, its currency will strengthen because investors will shift their assets to that country to gain higher returns. Decreases in the payroll employment are considered as signs of a weak economic activity that could eventually lead to lower interest rates, which has negative impact on the currency. A country that has a significant Trade Balance deficit will generally have a weak currency as there will be continuous commercial sellings of its currency.
GDP is reported quarterly and is followed very closely as it is a primary indicator of the strength of economic activity. A high GDP figure is usually followed by expectations of higher interest rates, which is mostly positive for the currency. When it comes to news trading Forex brokers, however, may not be supportive of traders intensions to trade during news announcements. There has been practices reported when Forex brokers simply freeze platforms during news, so that no trades can be opened or closed. Forex trading is a high risk investment.
All materials are published for educational purposes only. Economic news releases often evoke strong moves in the currency market, creating a lot of short-term trading opportunities for breakout traders. However, not all news reports are tradable. Some of them may not have significant effect on the market while others do.
So, before deciding on trading the upcoming news traders may want to find out whether the news is worth trading or not. Traders can predict most probable outcome of the news by looking at such economic calendar fields as: “Forecast” and “Previous”. Figures in those fields can give an idea about the current situation Then, traders would watch the news report and pay attention to the actual numbers released. This news trading requires more attention from traders, but is also more effective as it carries lesser risks. What you should know about trading the news in Forex1.
Even if you do not trade news it is important to know about the date and time the news are due, to be able to prepare to possible short-term extreme market conditions. Some traders, actually, prefer not to trade at all during economic news releases. USD Currency Pair Stretches Solid Up-move Beyond 0. LOOK: FTSE 100 Share Index Price Forecast, Sept.