How to Make Sense of Economics and Finance News For Forex Traders
If you’re like me, you like to stay on top of the latest economic news and trends. However, economic news is not as easy to interpret as you might think. It is a largely speculative market, and you may be surprised to learn that governments, commercial banks, and institutions have a vested interest in a country’s GDP. Here are some ways to make sense of economic news and data. But don’t be overwhelmed by the numbers.
In order to make sense of it all, we need to understand how economic news is reported. While there are numerous economic indicators that we should keep an eye on, there are five most important economic news releases that should serve as a starting point. These include: the unemployment rate, the GDP, and the latest data from the central bank. And of course, there are many more. The list doesn’t end here. Economic news is a major part of fundamental analysis and should be analyzed thoroughly in order to make informed decisions.
The first thing to remember is that different countries use different names for similar data. The most important events in an economy can change with the world’s events. For instance, during certain times, the focus on interest rate decisions could overshadow everything else. Nonetheless, if you’re a U.S. citizen, you should pay special attention to these events. So, the next time you’re watching the economic news, take a look at the data presented in the table below.
Another way to make sense of economic news is to consider the impact it will have on your own financial decisions. Some of these news releases aren’t particularly helpful to forex traders. They can affect the fundamentals of the currency market, but the overall sentiment will be affected by the news. The Conference Board Leading Index, for example, has a small impact on AUD/USD, while the Reserve Bank of Australia’s overnight cash rate has a greater effect.
While the recent U.S. economic recovery is solid, recent headlines have focused on inflation and the U.S. supply chain. In addition, the COVID-19 crisis has disrupted the supply chain. While GDP is the key economic indicator, there are fewer economic indicators that cover employment. If you’re interested in learning more about these important factors, read the article below. You’ll learn more about what affects the U.S. economy.
Traders can trade on economic news by looking for a period of consolidation before a big number comes out. They can also trade breakouts on the back of news. A good example of trading on news is a EUR/USD pair that was confined within a 30-pip trading range 17 hours before its release. A high probability of a significant move was evident, which made a breakout trade a good opportunity. There is also a wide range of indicators that can be used to interpret news.
If you are an investor, you should pay close attention to U.S. economic news. The de facto reserve currency of the world will be impacted by this data. Nonfarm payrolls, or NFP, is released on the first Friday of each month by the U.S. Bureau of Labor Statistics. An upwardly revised NFP forecast is bullish for the U.S. Dollar, but bearish for EUR/USD/JPY.
Another app that provides up-to-date news is TheStreet. This free app provides you with global business news and analysis, as well as full episodes of CNBC’s “Squawk Box” and related shows. TheStreet also offers a stock rating system that helps you find the best stocks to invest in. It also includes articles written by award-winning Bloomberg journalists. This app also has the ability to track specific stocks and get real-time stock quotes.