A recent study investigated the impact of economic news on the U.S. dollar against the euro. In addition to the usual macroeconomic news, this research also examined the coverage of inflation and unemployment rates. The study covered two major recessions, two severe bursts of inflation, and three presidential elections. Many complain that television networks overemphasize bad economic news. The results suggest that economic news tends to affect the sentiment of foreign investors.
NPR’s economic news service covers the U.S. economy and other global economies, including the Federal Reserve and World Bank. It features commentary on economic trends, and is available in a variety of formats including podcasts and RSS feeds. NPR’s website also provides audio files of many economic shows. It’s worth checking out a few of these sources when it comes to economic news. But how can you decide what to pay attention to?
When it comes to economic news, a quick glance at a recent economic release can help you trade the market accordingly. Look for periods of consolidation before a big number is released, and trade the breakout on the back of that news. While this method is effective on short-term time frames, you should also be aware of the importance of macroeconomics when trading news. For instance, a recent Eurozone unemployment report could indicate a significant support or resistance level, and you should trade accordingly.
While most central banks aim to keep inflation under 2.0%, the Federal Reserve uses the Personal Consumption Expenditure Index (PCE) as an alternative. Regardless of the methodology used, a forecast for a rising CPI is bullish news for the currency. As a result, the EUR/GBP currency pair could be a valuable play. This is important because it could influence the price of oil or the Euro.
A common economic news release is the nonfarm payrolls report. This report is a leading indicator for the employment situation in the U.S. The number of jobs added by the corporate sector is also important and can affect the market considerably. When the forecast for the NFP is higher than expected, the U.S. Dollar will be in a bullish mood, while a higher forecast would be bearish for EUR/USD. The higher the number, the better for the USD/JPY.
Another app with extensive coverage of the U.S. economy is CNBC Breaking Business News, which is available on iPhone and Android. This app provides actionable financial news, technical analyses, and market data. You can even watch full episodes of CNBC’s business shows. Aside from its news coverage, this app lets you share articles and videos with friends through social media. And for investors, Barron’s is an indispensable financial news source. Using Barron’s on your iPhone will give you access to its articles and analysis each weekday.
On a broader scale, the March jobs report didn’t capture the impact of Russia-Ukraine, but it was still a good indicator. The Fed is on track to raise rates quickly in the second quarter. Comerica raises their forecasts for interest rates in 2022 and 2023. The news from Europe is also good. The currency is weaker, which means that imports are more expensive. As a result, the price of consumer goods is rising.
Another way to interpret the Purchasing Managers Index is to look for a trend. The PMI typically hovers near 55 to 60 during a normal growth period. In other words, if it has gone up consecutively, it is considered bullish news for the currency associated with it. The UK PMI could rise from 52 to 55 over the past few months, while the US PMI could go from 52 to 53 in the past few months.
While China’s economy is slowing and remains weakened by the COVID pandemic, the first quarter of 2022 was better than many analysts had anticipated. Despite this, growth in industrial production and business spending remained weak. Inflation pressures would also have a negative impact on China’s growth prospects. The government is expected to increase interest rates in April. However, the COVID pandemic has dampened some emerging market economies.