5 Forex News Releases You Should Be Aware Of

economic news

If you want to learn about the global economy, economic news is an important part of your financial strategy. The news about economic indicators is not just limited to the stock market, but also includes such things as the Purchasing Managers’ Index, Housing Starts, and the Capacity Utilization Rate. In this article, we will discuss 5 economic news releases you should be aware of. Each of them will affect the markets in some way. These news releases can act as a jumping off point for further investigation.

The Federal Reserve releases monthly reports detailing the state of the economy, and the World Bank and Federal Reserve provide commentary on economic trends. You can follow economic news on NPR’s website or subscribe to its RSS feed for more information. The World Economic Forum is underway in Davos, Switzerland, where political and business leaders from around the world are meeting to make important decisions that will impact the global economy. Several of the reports that come out of Davos have positive implications for global economic health.

The currencies in various countries can react to macroeconomic news in many ways. For example, news about interest rates and GDP numbers can affect the prices of the currencies in these countries. These economic news releases can also influence the Federal Reserve’s decision-making process. But traders must wait for the reaction of the markets. Some of them may react in opposite directions to what they expect. That is why economic news is crucial to the Forex market. You cannot afford to ignore it.

Economic indicators are important to the forex market because they affect a country’s currency. The Conference Board Leading Index, for example, has a low impact on the currency, while the unemployment rate and overnight cash rate of the Reserve Bank of Australia have a huge effect on the AUD/USD. But beware! Despite the volatility in macroeconomic indicators, the impact of these releases is considerable. In addition, economic data releases are an important part of fundamental analysis, so it is advisable to monitor them closely.

The most common way to trade economic news is to look for a period of consolidation ahead of a big number and trade a breakout on the back of this news. However, volatility is one of the main reasons that news releases are difficult to trade. Volatility prevents the right moves from becoming sustained. The market reacts largely to market expectations. When the news is unexpected, it creates an unfavourable trading environment. The volatility in a country’s currency can cause a major shift.

Generally speaking, central banks aim to keep inflation at 2.0 percent or below. The Federal Reserve uses the Personal Consumption Expenditure index as an alternative to the CPI. As a result, a forecast that shows the CPI is growing is good news for currency investors. When the US Dollar is weakening, it’s time to sell the USD/CHF pair. If the UK’s economy is experiencing a slowdown in GDP, the EUR/GBP pair could go down.

Another important economic news event is the meeting of the European Central Bank. As the world’s de facto reserve currency, the Federal Reserve must closely watch the ECB’s monetary policy. An increase in Federal Reserve rate will be a bullish factor for the U.S. Dollar. A rise in Japanese Central Bank rate is also positive for USD/JPY. The Bank of England will also release its latest economic forecasts. This is an important leading indicator of employment in the U.S.

The recent report shows that the U.S. economy expanded by 1.7 percent in the last three months of 2021. In Europe, the eurozone will release its data on Monday, so if you want to know if interest rates are going to go up in the second half of this year, this will be a key event to follow. The economic news for the week ahead will include consumer sentiment. The data on consumer confidence and personal finances are crucial to investors.

This week’s economic data is also very important. The UK labor market report and the revision of quarterly national accounts are both due on Tuesday. France will release its first quarter unemployment rate, as will the UK’s Office for National Statistics. With all of these economic data, European markets are expected to open higher on Tuesday. The news on employment and productivity has been mixed. However, China’s policymakers have bucked the trend by slashing its interest rates on five-year loans. Meanwhile, President Biden suggested lifting China’s tariffs to help combat inflation.