Forex Investors Buzz Week Ahead jan 22 -26 Investors Buzz Week Ahead Next week, the most important data for the US include the advance estimate of fourth quarter GDP growth, durable goods orders, new and existing home sales, and flash Markit PMIs. Elsewhere, the ECB and the Bank of Japan will provide an update on their […]
Stock Indices Forecast, Technical Analysis & News
FOREX Analysis, Forecasts & Daily Market News
INVESTORS FOREX One of the great advantages of trading currencies is that the forex market is open 24 hours a day (from 5pm EST on Sunday until 4pm EST Friday). Economic data tends to be one of the most important catalysts for short-term movements in any market, but this is particularly true in the currency market, which responds not only to U.S. economic news, but also to news from around the world. With at least eight major currencies available for trading at most currency brokers and more than 17 derivatives of them, there is always some piece of economic data slated for release that traders can use to inform the positions they take. Generally, no less than seven pieces of data are released daily from the eight major currencies or countries that are most closely followed. So for those who choose to trade news, there are plenty of opportunities. Here we look at which economic news releases are released when, which are most relevant to forex (FX) traders, and how traders can act on this market-moving data.
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Which Currencies Should Be Your Focus?
The following are the eight major currencies:
1. U.S. dollar (USD)
2. Euro (EUR)
3. British pound (GBP)
4. Japanese yen (JPY)
5. Swiss franc (CHF)
6. Canadian dollar (CAD)
7. Australian dollar (AUD)
8. New Zealand dollar (NZD)
This is just a sample of some of the more liquid derivatives based on the currencies above:
As you can see from these lists, the currencies that we can easily trade span the entire globe. This means that you can handpick the currencies and economic releases to which you pay particular attention. But, as a general rule, since the U.S. dollar is on the “other side” of 90% of all currency trades, U.S. economic releases tend to have the most pronounced impact on the market.
Trading news is harder than it may sound. Not only is the reported consensus figure important, but so are the whisper number and the revisions. Also, some releases are more important than others; this can be measured in terms of both the significance of the country releasing the data and the importance of the release in relation to the other pieces of data being released at the same time.
China Q4 Industrial Capacity Utilization Hits Record High China Q4 Industrial Capacity Industrial capacity utilization in China came in at 78.0 percent in the December quarter of 2017, up from 76.8 percent in the previous period. Considering full 2017 industrial capacity utilization was 77.0 percent, which was 3.7 percentage points higher from a year earlier. […]
Australia Jobless Rate Rises to 3-Month High INSIGHT Australia Jobless Rate Australia’s seasonally adjusted unemployment rate unexpectedly rose to 5.5% in December 2017 from 5.4% in November, above market consensus of 5.4%. It was the highest jobless rate since September as the number of unemployed increased by 20,500, while the economy added 34,700 jobs. Australia […]
US Industrial Output Beats Forecasts INSIGHT US Industrial Output US industrial production increased by 0.9 percent month-over-month in December 2017, easily beating market expectations of 0.4 percent and following a downwardly revised 0.1 percent drop in November. Utilities output jumped 5.6 percent in December, recovering from a contraction of 3.1 percent in the previous month, […]
Bank of Canada Raises Interest Rate %1.25 INSIGHT Bank of Canada Raises Interest its overnight rate by 25bps to 1.25 percent on January 17th 2018, in line with market expectations. Policymakers said that recent data have been strong, inflation is close to target, and the economy is operating roughly at capacity but noticed that uncertainty […]