If you’re looking to buy or sell currencies, economic news can be very helpful. In addition to news about stock markets, economic news also includes data and analysis about the state of various countries. Positive economic news about a particular country will spur investors to make purchases. If negative news slams a country, investors will stay away. To help you understand the importance of economic news, learn more about what it means for your currency. Here are a few examples of news stories.
The currency market is made up of governments, corporations, and institutions. It also includes currency speculators who buy currency based on their expectations that interest rates will rise. The vast majority of trading volume is generated by these people. Currency speculators concentrate their attention on currencies such as the US dollar, euro, and yen. They buy currency in anticipation that interest rates will rise, and commercial banks invest capital in countries with a good outlook.
You can also download apps that will deliver financial news and stock analysis to your smartphone. TheStreet app, for example, lets you watch live episodes of CNBC’s “Squawk Box” show. It’s a great way to keep up with market news and read articles written by leading financial experts. If you’re an investor, you can also subscribe to Barron’s, a leading business magazine. The app also offers access to articles and commentary seven days a week.
The first two examples above demonstrate how currency pairs react to economic news. In the case of EUR/USD, 17 hours before the release, the currency pair was confined to a tight 30 pip trading range. A pip represents the smallest change in currency pair prices. Because most major currency pairs are priced to four decimal places, the last decimal point represents the smallest change. The release of this news was accompanied by an escalating level of volatility, which thwarted the right move.
You should also pay attention to the publication times of economic news. You can trade on a short-term basis or longer-term basis with these types of news. When trading the currency market, make sure to know the source of the information you’re receiving. For instance, if the Euro is holding its breath ahead of its October GDP number, you should trade on the euro in anticipation of the release. If you’re using a variable-spread broker, make sure that the spread is limited and the news is reliable. If it’s not, you’re taking a huge risk.
Forex trading is often regarded as the last frontier for investors. While it’s possible to trade your way to financial freedom, most investors are not wealthy. While you can’t make a fortune overnight by investing in currencies, forex trading is the most viable option for small investors who are looking for a way to trade their way to prosperity. By carefully monitoring currency trading news, you can react to market-moving information and profit. You can buy or sell currencies based on this information.
Several recent reports highlight the importance of economic news. Whether the Fed will increase interest rates soon is a crucial question. The recent ECB meeting may have weakened the US dollar, but the Fed is unlikely to change its policy. And a strong March jobs report will only strengthen the Fed’s resolve to increase rates rapidly in the second quarter. The report doesn’t capture the impact of the Russian-Ukraine situation. The personal saving rate hit its lowest level since 2013.
The global economy was under pressure from a variety of burdens – including a renewed Russia-Ukraine war. Russia’s war on Ukraine has resulted in the highest unemployment rate in Europe since 2008, while Russia’s invasion of Ukraine is causing an economic disaster. In Europe, the ruble’s collapse has pushed up the price of imported goods, which is now accounting for more than half of consumer spending. This has a ripple effect on the global economy.