 |
If you like our blog, click on the "Like" button below. Once you do, you will get FREE Instant Access to the Magic Forex Candlesticks plus the Magic Forex Divergence Trading Guides. |
News reports are vital pieces of monitored forex information because they affect fx prices importantly (often preceded by a tight sideways consolidation in forex charts as speculators wait for the forex news).
To monitor sources of forex information, I use the free forex economic calendar at the fx 360 website.
A forex news announcement is a report released by a country to announce its recent economic performance. This is important forex information for forex swing trading. There are 14 reports that the major Forex players publish to describe the economic situation in their countries.
News announcements bring out the relative strengths of a country’s performance in a plethora of categories and can change the value of the currency.
News reports, obviously, are reasons for big price movements and movements in the currency exchange.
There are common categories of data in each forex fundamental announcement.
Some types of the most widely published forex information are:
- (Gross Domestic Product): The total amount (expressed in dollars) of the trade goods and services produced in the country. GDP includes goods and services produced by private industry as well as goods and services produced by public industry. GDP is usually expressed in real terms (that is, prices are indexed relative to some year in the past such that GDP does not also include inflation).
- CPI (Consumer Price Index): The Consumer Price Index reflects the relative price of certain consumer items like food, clothing, housings, transportation, and energy. It is indexed to supply a relection of today’s prices compared to prices before (e.g. 1956 or 2000).
- PPI (Producer Price Index): The PPI reflects the relative price of certain items used by producers in the production process. The PPI includes such items as raw materials and energy. Like the CPI, the PPI is indexed to provide a measure of today’s prices compared to prices in the past (i.e. 1983 or 2000).
- Consumer spending: The amount of money that all of the persons of the country spent (the amount of income that was spent on consumer goods such as food, clothing, housing, luxury items, etc.). Like GDP and personal income, consumer spending is usually expressed in real terms (that is, dollars are indexed relative to some year in the past such that consumer spending does not also include inflation).
Other forex information examined in a fundamental announcement includes industrial production, capacity utilization, retail sales, money supply, current account balance (the amount in a country’s external trade account), and government deficits.
When a fundamental announcement from earlier altered the market to a new price and the new forex announcement is only replaying that price swing, then the market probably won’t resolve to the news report with a major shift. In either case, prices would continue to move in the direction of the trend that happened before the price tightening.
No related posts.
Related posts brought to you by Yet Another Related Posts Plugin.
Comment