Crucial news and economic reports that influence the forex market.
It’s been public secret that country’s currency is highly influenced and affected by a variety of economic indicators which represent how a country is doing. That’s why a foreign exchange trader has to be persistently on top of these reports. In addition to learn Forex for its basics, a trader needs to be aware of the other things that can influence the market too.
One of the most important things that are able to affect the Forex market movement is news and economic reports. As a Forex trader, you need to always be ready on reading and interpreting news and economic reports as they are released. You are better able to do it fast as well since the market instantly reacts to this kind of reports.
News and Economic Reports to Monitor for Forex Trading
Now the question is what exactly kind of news and economic reports that we need to watch out? Considering that there is a bunch of data and report released regularly, there must be some of them which are really needed for Forex trading. Among professional Forex traders, the following economic indicators are what they frequently follow to help them trading foreign exchange.
#1 Employment Data
Employment data is one of the strong economic indicators since it displays the unemployment level in particular country. As you may have known, a high rate of unemployment is able to generate a larger strain on economy of a country. Among the data of employment out there, you have to follow more about unemployment rate, employment change, unemployment claims and non-farm employment change.
#2 Economic Data
Moreover, it is also important for you to watch out economic data such as Gross Domestic Product (GDP) and Trade Balance of the major currency leaders and economies. This data is quite essential and can instantly influence the value of certain currency the time it is released. Other than that, you should monitor other economic data such as Producer Price Index and Consumer Price Index.
#3 Central Bank and Policy Makers
Believe it or not, the largest influencers of the Forex market movement are for sure the policies and announcements made by important monetary authorities and a country’s central bank. There is no doubt that reports released by these two will have a lot of impacts to the movement of a currency. The following are the most important data you need to monitor at this point.
• Interest Rate Announcement
Interest rate arranged by a country’s central bank is highly important indicator that can influence the Forex market. In
Forex trading, a currency’s interest rate is considered as the biggest factor to determine the perceived worth of a currency. This is because the data can either slower or faster inflation which then resulting lower or higher economic growth of a country.
• Other Monetary Policy Statements
In addition to interest rate announced by a country’s central bank, it is also important for you to monitor the other monetary policy statements made by the country central banks. The monetary policy which is made to control money supply in economy can surely affect Forex market. Consider policy statements released by European Central Bank (ECB), Federal Open Market Committee (FOMC) and Federal Reserve (Fed).
With a lot of economic data you have to monitor, you need to make sure that you get the information from a reliable provide which is dedicated to report all of these information in one place. As a result, you won’t be confused on applying the data you get on your trading strategy. The last but not least, don’t stop to learn Forex trading strategy!