How Economic News Affects the Forex Market

economic news

There are many types of economic news that can influence the stock market. These include changes to interest rates, inflation, retail income, and unemployment. Economic announcements can affect market sentiment, so it’s important to stay on top of them. Economic news is also helpful for determining the timing of trades. Here are some ways to find the latest economic news.

You can read economic news online from sources like the U.S. Federal Reserve, NPR, and the World Bank. These sources provide analysis and forecasts of the local and regional economy. You can also subscribe to their RSS feeds or podcasts for more detailed coverage. There are several other sources of economic news, too.

A recent study conducted by Bryan Kelly, a Yale University professor, explored the role of economic news in measuring the state of the economy. The results suggest that one of the main roles of the economics profession is to develop and measure the state of the economy, and then use this information to build models that link current conditions to future outcomes.

In forex trading, the currency market is particularly sensitive to economic news that affects the overall economy. By understanding how economic news affects currency markets, you can assess whether to invest or hold your currency. For example, a central bank’s hawkishness might push a currency pair up, while a central bank’s dovishness may cause it to fall. As a result, it’s essential for forex traders to stay on top of the latest economic news.

Although news-based trading can be profitable, it can also be risky. It requires expert fundamental analysis skills and an understanding of economic announcements. Moreover, you’ll have to carry your positions for longer periods of time, and they’ll likely be open for days. Additionally, you may have to pay additional holding costs for these positions.

While the unemployment rate in the United Kingdom is likely to fall next month, the unemployment rate in the European Union is likely to remain unchanged, which is bullish for EUR/GBP. Another economic indicator to keep an eye on is Gross Domestic Product (GDP) growth. A higher GDP growth rate generally means a stronger currency. If you know what economic news will affect the GBP/USD pair, you can easily predict the direction of the currency pair.

There are many types of economic news that you can read. Reuters, for example, has been covering the U.S. markets since 2008. By keeping up with the latest economic news, you can stay informed and make informed trades. You can use the latest financial news to make a profit. You’ll be able to predict when to buy and sell.

The latest US inflation data shows that inflation is slowing. While one month of data is not enough to form a trend, it suggests that the spike in inflation has peaked. Investors cheered the news with lower bond yields and higher equity prices. But the underlying trend is still a downward trend for now. Inflation has become one of the biggest challenges to the American economy. Despite the underlying challenges, the economy remains a strong engine of the global economy.