Five Economic News Releases That Are Important to Forex Traders and Investors

economic news

Economic news is important for making investment decisions. It provides an updated picture of the current state of the economy, including changes in interest rates and retail sales. It also covers a variety of events that impact national and continental markets. The following are five economic news releases that are particularly important to investors. These announcements can have significant ramifications for the stock market.

Kelly developed a topic model of business news that summarizes business news into topical themes. This model then quantifies the proportion of news attention devoted to each theme. News attention estimates can then be used to build statistical models of numerical economic time series. His research paper can be found online. The author has a PhD from the Institute of Mass Communication and Media Research at the University of Zurich.

Depending on the time of day, a single economic release may be more or less important to traders and investors. For example, a report on U.S. job growth and unemployment could be more important than a release on interest rates or trade. Consequently, market timing is crucial, and it is essential to stay on top of the latest economic news.

Economic news relates to both supply and demand. During times of economic instability, news about lower or higher supply can influence prices. Moreover, news about trade policy, politics, terrorism, and economic sanctions can influence the prices of commodities. In addition, news about market sentiment can affect currency trading. For example, during times of economic turmoil, investors often seek refuge in safe-haven currencies. However, once the financial markets stabilize, the currency price of safe-havens may fall.

Forex traders have long used economic news to make trading decisions. Nevertheless, global events have a greater impact on currency values than ever before. With constant research and experience, news trading can be a valuable tool for investors. The right timing can help you capitalize on predictable and impactful news events, and minimize avoidable losses.

Economic news releases from the U.S. tend to have the most pronounced impact on forex. The common strategy to trade forex on economic news is to look for consolidation ahead of a big number, and then trade a breakout that follows. If you don’t want to wait for a big number, you can also trade exotic options. Exotic options usually have lower volatility than trading a currency pair.

Economic news releases will affect currency prices in many ways, and traders should closely follow them to be well-prepared for trading. If the release of economic data differs significantly from the consensus forecast, the market will be prone to volatile movements. It’s essential to track economic news releases to maximize profits and minimize losses. This is especially important when trading forex.

One important macroeconomic report is the nonfarm payrolls report, released by the U.S. Bureau of Labor Statistics on the first Friday of every month. This report will affect the value of the U.S. Dollar and all currency pairs that involve the U.S. currency. If the forecast is higher than expectations, this will be bullish for the U.S. Dollar, while a lower NFP will be bearish for EUR/USD/JPY.

The Purchasing Managers Index (PMI) is another important indicator to follow. It measures business sentiment and reflects the outlook for a given economy. During a normal period, it will be near 60 or 55. The trick in interpreting PMIs is to look for a trend. If the PMI for a particular country has been rising for a long period, this is bullish for the currency.

Interest rate hikes are another important factor affecting global growth and equity valuations. The Fed recently raised interest rates for a third time in a row and forecasts that they will continue raising interest rates for a while. As a result, bond yields rose. This is also a sign that the Fed wants to bring inflation down to a more moderate level.

If you want to get in on the action and learn about current issues that affect the world’s economy, you can use a mobile application that provides up-to-date news and analysis of companies and the stock market. CNBC Breaking Business News, for instance, has an iPhone app that allows users to monitor real-time stock quotes and interact with interactive charts. The app also includes a proprietary stock rating model and a range of financial news and market data. It is also a great source for stock-picking insights from top financial journalists.