If you’re interested in the latest financial market trends, you should be aware of economic news. It includes information on the latest unemployment and inflation numbers, job growth, interest rates, and the Federal Reserve. Keeping up with current news is also crucial for investors, as it helps them make better decisions. Below are 5 economic news releases that you should follow. They will provide you with crucial information for your financial future. The first of these is the Purchasing Managers’ Index, which shows the current state of the economy. Another important economic news release is the GDP.
In July, Spain’s unemployment rate increased a bit, compared with the previous month, while the manufacturing PMI in Switzerland slipped to 58.0 from 59.1 in June. The report showed that the country’s economy is expanding faster than expected, and the key consumer price indicator in Singapore rose the fastest in 13 years. Meanwhile, Japan lowered its economic growth forecast, down from its previous forecast of 3.2%. South Korea experienced the biggest fall since the COVID-19 pandemic.
The level of economic news released is usually set by the leading economists. For instance, a change in the non-farm payrolls number will have a significant impact on the economy. Likewise, the Reserve Bank of Australia’s overnight cash rate is also significant for the AUD/USD. These announcements will often influence the sentiment of the market. If they are positive, the AUD/USD will rise. If it’s negative, however, the AUD/USD will fall.
The currency pair EUR/USD had been trapped within a narrow 30-pip trading range seventeen hours before it was released. A pip is the smallest change in a currency pair. Most major currency pairs are priced to four decimal places. A change in the last decimal point represents a change of one tenth of a percent. This would have made the news release a perfect opportunity for a breakout trade. The likelihood of a sharp move is high, which means a breakout trade was a perfect opportunity for traders.
When an economic report is released, the forex market tends to react in a similar way to the economy. It tends to be the most significant for the currency market, so traders should look for a period of consolidation before the big number or breakout after it is released. Traders can also take advantage of exotic options to catch the breakout move. However, this strategy involves much less volatility than trading a currency pair. If you’re not comfortable with such risks, you should consider trading in forex using exotic options.
A trading strategy based on economic news can help you make profitable trades in a variety of market conditions. By identifying the price patterns associated with important events and predicting their implications, traders can make better decisions in the forex market. Using an economic calendar is an essential part of a trading strategy because it provides a glimpse into the fundamental economics that directly impact currency values. You can also use it as a reference for identifying market drivers and forecast important events.
Another important piece of economic news to watch is the Purchasing Managers Index, or PMI. The PMI reflects the perception of purchasing managers in the economy. Purchasing managers rate business conditions in relation to other factors such as the employment situation and hiring plans. When the PMI rises, the U.S. Dollar tends to rally as a result. However, a higher NFP forecast will negatively affect EUR/USD/JPY.
Next Wednesday’s Federal Reserve meeting will determine whether to hike interest rates again. Democrats and progressives are keen to see the Fed tread gently, but the markets expect another three quarter point hike this time around. And there are other economic events to look forward to in the coming weeks: the first estimate of second-quarter GDP will be released, and the government will declare a Biden Recession and begin advertising it throughout the media. However, this doesn’t necessarily mean that the economy is experiencing a slowdown.
Stock markets in Europe finished mixed with geopolitical tensions and the Bank of England’s monetary policy decision later this week. Earnings continue to be the biggest driver of movement in the first quarter, with BP PLC rising after posting its largest quarterly profit in 14 years. The company’s dividend was increased on the back of recent spikes in commodity prices. Despite these economic data, the Russia and Ukraine war remained the main focus in financial news. Evergrande, the Chinese real estate developer at the center of the crisis, faces more than $300 bn in liabilities.