Note: German PPI excludes volatile items, such as energy components and seasonal food, in ness to provide a more accurate picture of price developments Discuss The value of items sold at small convenience stores, based on a monthly industry survey. Many traders are able to take profits from rapid price movement before and after the news released. Before deciding to invest in foreign exchange you should carefully consider your investment objectives. China GDP Growth Beats Estimates In Q1. The figure affecy also indicative of demand for the New Zealand Dollar. In addition, developments in many of the Trade Balance's components are typically well anticipated. Chinese Shares Fall On Monday.
One of the most important types of information available to a forex trader comes in the form of economic news or data releases. Such key news items concerning the economic health of a country will have a tendency to directly affect the value of that nation's currency relative to the currencies of other nations. As a result, they are key pieces of any trader's fundamental analysis process. Also, from a technical trader's point of view, since such economic data releases can often move the market substantially, it makes sense to keep a close eye on what data is coming out and economic news affect forex trading.
Several of the more important economic numbers which may have an impact on the value of a country's currency include. In addition to the key fundamental indicators listed above, a government's employment report, as well as level and anticipated future direction of the country's interest rates, will often significantly affect the value of a country's currency. Economic news affect forex trading forex traders keep an economic calendar close at hand that contains the times and dates of the aforementioned major economic data releases for the currencies that they are interested in trading.
This calendar should also list details of other important events like G7 Summits and government budget announcements, as well as key policymaker speeches and testimony given during government finance hearings. Since currencies only trade in pairs in the forex market, their values are generally expressed relative to that of another currency. The same relationship tends to holds true with respect to evaluating the economic news relevant to each currency. Furthermore, in the most actively traded currency pairs, the U.
Dollar usually takes the role of being the primary standard against which the values of other currencies are measured for historical reasons. As a result, when reviewing the economic data that has already been released as part of your fundamental analysis process, you will need to take into account the overall economic picture in both of the nations involved in the currency pair you are interested in trading. You can then weigh the key fundamental factors for one currency country against the data observed for the other currency's country to obtain your fundamental forecast for the pair.
Learn more about key fundamental forex factors. Risk Statement: Trading Foreign Exchange on margin carries a high level of risk and may not be suitable for all investors. The possibility exists that you could lose more than your initial deposit. The high degree of leverage can work against you as well as for you. To start, simply fill in your email address:. We value your privacy.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to invest in foreign exchange you should carefully consider your investment objectives. No information or opinion contained on this site should be taken as a solicitation or offer economic news affect forex trading buy or sell any currency. Past performance is no indication or guarantee of future performance.
Please read our legal disclaimer. If you like this discussion on Forextraders then please like us on Facebook. Trade Balance - a measure of the amount of imports versus exports of a country. Gross Domestic Product - a measure of the total value of goods and services produced in a country. Consumer Price Index - a measure of inflation calculated by the change in the price of a basket of goods. Retail Sales - a measure of all goods sold in retail outlets which indicate the amount of spending in the economy.
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Positioning Yourself Prior To Economic News Release - Forex Trading Strategy Q&A
Trade the Forex market risk free using our free Forex trading Here we look at which economic news Can I Avoid Getting Hit by Volatility When Trading News?. Your favorite forex trading platform will often have its own news and analysis section as well. News and Economic Data That Affect Forex Market Movements. This forex trading article covers some of the key types of economic news that affects forex rates. This forex trading article covers some of Economic News That.