If you are a trader of foreign currency, you should know about the latest economic news. Even the most experienced economists can get confused by some economic news. You should read several economic news articles to understand the current situation in the global market. Here are some of the most important pieces of economic news to keep an eye on:
Economic news can affect the price of many commodities. For instance, news about the unemployment rate can affect a country’s currency. Meanwhile, news regarding interest rate decisions, GDP numbers, or unemployment rates can affect currencies in different ways. Such news can affect Federal Reserve decision-making processes. The important thing to remember is to wait for the market’s reaction before investing. The reaction of the markets may be counter-intuitive, and you need to wait patiently for it to settle.
In addition to news regarding the economy, you should also watch for the impact of major events in other markets. These include the Purchasing Managers’ Index, Housing Starts, and Capacity Utilization Rate. Keeping track of recent economic releases can help you identify significant support and resistance levels. Also, keep an eye out for pivot points to find significant support and resistance levels. Once you know how to trade using pivot points, you can move on the news itself.
Almost all leading economists agree on the level at which economic announcements affect the market. If the country’s unemployment rate has decreased, for example, this will make the country’s economy look stronger. But if interest rates have decreased, then that will make a country’s currency less attractive and cause the country’s currency to drop against other currencies in the world. It’s a simple and quick way to keep track of the currency market.
Positive news regarding the country’s economy can be a great source of economic news for currency traders. While it doesn’t guarantee economic growth, it can encourage investors to invest in the country’s currency. Then again, negative news about the United States may cause a downward trend in the currency. If you trade USD/JPY, you should look for opportunities to short the pair. You’ll want to watch out for inflation data in the Eurozone as well as the U.S. Dollar.
The main reason why trading economic news is so difficult is volatility. Whenever the market is volatile, the right move may not be sustainable. And when volatility is high, the wrong move may not even happen. The only way to avoid this is to know what to expect and watch the data. If you can anticipate market volatility, you can trade on the news. And once you do, you can reap the rewards! It is important to keep in mind that the most recent economic news will have a big impact on the market.
Besides economic news, a range of events are shaping up for the markets. The Russian government’s blockade has halted the recruitment of foreign currency experts. Ukraine is facing a loss of $6 billion in grain revenue. Meanwhile, the Czech central bank will likely raise interest rates and discuss foreign exchange interventions on March 31. These are just a few of the important economic stories for this week. This is an overview of recent events, as well as a brief look at the day ahead.
The Purchasing Managers Index (PMI) is one of the most important economic news releases. It is based on the survey results of purchasing managers in the economy. The index asks managers about their expectations for business activity, hiring plans, inventory levels and more. If the PMI is rising for several consecutive months, this is considered bullish news for the currency associated with it. That’s why a rise in the UK PMI can help the UK and US dollar.
In other economic news, a Sri Lanka government committee called for the formation of a crisis management team. The Atlanta Federal Reserve Bank President penciled in six quarter-point interest rate hikes in 2022. In addition to the economic news mentioned above, the White House invited executives from various U.S. businesses and industries to attend its summit. On the other hand, the Chinese government has pledged to increase monetary support but urged caution against flooding the market with liquidity.
As the US economy continues to struggle with the aftermath of Russia-Ukraine, the Federal Reserve has become more cautious in its monetary policy. As a result, the Fed has increased its short-term interest rates and begun to sell assets. It is the only major central bank not to tighten its monetary policy as quickly as it did during the crisis. With inflation already reaching 40-year highs, the Fed must carefully monitor the risks associated with raising rates too fast in the near future.