One reassuring clue may have come just days ahead of the long-awaited US rate rise, when the PBoC published details of a broader currency basket against which to measure the renminbi. A higher headline figure indicates a positive expectation for Euro-zone economy. The Manufacturing Activity Report summarizes key points regarding the data gathered by the monthly business surveys sent to manufacturers and gives a concise breakdown of how optimistic manufacturers feel in the short-term. Is there a new debt crisis on the horizon? The headline number is a percentage change in the figure. The following Monday, the renminbi duly weakened — but it did so without affecting other currencies.
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Trading technical chart patterns can be extremely profitable but one must always be aware of the fundamental story which is ultimately driving the markets. The decision they have to make is whether to leave rates unchanged, raise rates or lower rates and the outcome of this decision is extremely important to the currency of the economy and as such, to traders.
An increase in rates is generally seen as bullish for the currency meaning it will increase in value and a decrease in rates is generally bearish for the currency meaning it will decrease in value whilst an unchanged decision can be either bullish or bearish depending on the perception of the economy at the time.
This is also where monetary policy is announced, which concerns vital matters such as the implementation of QE, which we explain thoroughly in our Forex Mastercourse. Some of the best trades you can make come from rate decisions, for example, since the ECB cut the EuroZone rate to 0. When GDP falls below market expectations, currency values tend to fall and when GDP outdoes expectations, currency values tend to rise.
The index gives information about the historical average prices paid by consumers for a basket of market goods and highlights whether the same goods are costing more or less for consumers. Central Banks monitor this release to help guide them in their rate and policy setting. If inflation is seen to be evident, and moving beyond a certain target then interest rate rises are used to counter this.
Unemployment Rate The unemployment rate of a country is crucial to markets given its importance to Central Banks as an indicator of the health of an economy. Higher employment leads to interest rate rises as Central Banks aim to balance inflation with growth and as such this figure draws huge market attention from traders.
This figure is so important we do an NFP preview each month giving you our analysis on the release and how to trade it. These Central Bank meetings are where we also learn about any changes in monetary policy, such as the announcement of quantitative easing. This is extremely important to currency traders and we explain this topic fully within our course.
Since the ECB announced their latest QE program on Jan 22nd of this year, EURUSD has fallen by over pips The key thing with all economic indicators and news releases is not just what the actual release means but how the market anticipates the release and subsequently reacts to it, this is where the trading opportunities are created. DailyFX provides forex news and technical analysis on the trends that influence the global currency markets. A demo account is intended to familiarize you with the tools and features of our trading platforms and to facilitate the testing of trading strategies in a risk-free environment.
Results achieved on the demo account are hypothetical and no representation is made that any account will or is likely to achieve actual profits or losses similar to those achieved in the demo account. Conditions in the demo account cannot always reasonably reflect all of the market conditions that may affect pricing and execution in a live trading environment. Price action and Macro.
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[timeline-express] (Visited times, 5 visits today)Kira VessiariContent Manager at OrbexMore Posts. The fast-updating Economic Calendar covers all important events and releases that affect the forex market. The calendar is timely, interactive, & customizable. 5 Forex News Events You Need To Know. it is extremely important for new traders to learn about the various economic indicators and forex news events and releases that shape the markets. Indeed.