News And Data That Affect The Forex Market

Changes in exchange rates of currencies of a country are strongly influenced by a variety of indicators that reflect the performance of the economy of the country. Data and good macro economic events coming from the country's internal and international level will have an impact on currency exchange rates. News relating to global economic and geo-political conditions also often cause no small impact.

As a forex trader you should regularly follow the news and data on the global economy, always ready to do the interpretation and prediction of the fundamental data release. You should be able to do so quickly given the market will react very quickly to respond to the indicators. Many forex traders who have had a position before the release of an important and fundamental experienced data loss shortly after the release of the data. To avoid this, we recommend that traders do not enter the market ahead of the release of important news or announcements data.

One of the questions that are common for the novice trader is what data need to be noticed. This question could be understood because it is a lot of fundamental data are released in a given time period. In this case usually forex traders always follow and pay attention to fundamental data release following a generally high-impact of currency exchange rate movements.

Data regarding the workforce

Labor data is one that reflects the strength of the economy of a country because it shows the level of unemployment in the country. As we know the unemployment rate is high will cause stress on the economy and could lead to political turmoil. Among the labor data to note trader is: unemployment rate, the number of claims for unemployment benefits, changes the amount of Labor (Employment Change) and Non-Farm Employment Change or also referred to as Non-Farm Payrolls (in the United States and some parts of the Euro area).

Economic data

Gross Domestic Product (GDP) is an important economic indicator that always look for traders because it will have a direct impact on currency values when the data is released. In the last time the trade balance data also have a direct impact but are likely to be reduced in the last few years. Other economic data high-impact is related to the rate of inflation as the Consumer Price Index (CPI) and retail sales (Retail Sales).

Central Bank and monetary policy makers

The most notable effect of the movement of exchange rates of the currencies of course monetary policy made by the central bank. The most important indicator is the level of interest rates and monetary kebijalan statement (Monetary Policy Statement) that contain quantities of target to achieve. For example, in the United States there is The Fed and the FOMC, in the United Kingdom there are BoE and MPC, and in the Euro area there is the ECB. In addition to the various statements made by officials of the central bank or Ministry of Finance officials will be greatly impacted the movement of currency exchange rates.

Posted by Unknown on Monday, February 2, 2015 - Rating: 4.5

Title : News And Data That Affect The Forex Market
Description : Changes in exchange rates of currencies of a country are strongly influenced by a variety of indicators that reflect the performance of the ...

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