For beginners, it is extremely important to gather knowledge about the different economic indicators and Forex news. Without updating ourselves, we cannot compete with the dynamic market. Different news helps new investors to get the right knowledge about trading and operate their trading business properly with the help of fundamental and technical analysis. A technical chart is really important, but without having deep knowledge of fundamental analysis, doing effective research into the stock market is almost impossible. Popular market news events provide the information in an arranged way that supports the traders to execute their operation successfully.
List of popular news events
1. Central bank rate
Central banks around the world make decisions on changing interest rates each month, which greatly affect the Forex market. The outcome of the decisions is very important for the economic change charges raising the rates or lowering the rates. The increase of the rate is considered a bullish market. On the other hand, the decrease of the rate is regarded as the bearish market best on the currency pairs of a different time. It’s more like dealing with stocks in the Hong Kong trading industry. You need to know about the news factors or you might lose money all of a sudden.
By understanding the actual situation that may seem complex, the statement that is provided by the central banks. It gives us an overview of the current economic condition so that we can predict the future and set our trading strategies based on the monetary policies announced. This news is concerned with vital matters such as QE and its implementation, and we can make the best trading decisions using information regarding the rates. For instance, ACB changed the erosion rate to 0.0 5% in 2004, and because of this, Euro/USD has fallen into 2000 pips.
To identify the economic health of a country, we use the Gross Domestic Product as an indicator, and the central bank of a country determines how first a country should grow, estimating the GDP. When the GDP of a country falls below its expectation, the currency value decreases, and when the GDP price rise, the currency value also increases. The information that is got by the central bank movements we can use for now again to anticipate the market volatility cautiously. For instance, when Japan’s GDP shrank shockingly by 1.6 % in 2014, then we found that the JPY also took a decrease against the dollar, and investors became able to find out about it through the prediction by the major banks in advance.
3. Inflation data
A consumer price index is a widely used method to measure the information of an economic situation. By using this indicator; we can get the information regarding the historical price average that is mainly paid by the consumers as a basket of market goods. The interest rate gets rice and moves beyond a certain level when inflation occurs. For this reason, Central Banks try to monitor the release of the currency rate based on policy management systems. For example, in the November of 2014, Canadian CPI beat the market expectations by 2.2 %, which resulted in the rise in the Canadian dollar by 2.3% against Japanese YEN, and the trend was continuing up to 6 years.
4. Unemployment rate
The unemployment rate of a country works as an indicator of the state of a country’s economic development and health. The interest rate rises when there is a higher unemployment rate. Central banks try to keep a balance of information by creating opportunities for employment by providing loans and inspiring commercial banks.
So to the bottom line, we can say that to do the fundamental analysis for successful Forex or stock trading, it is vitally important because it helps update our economic knowledge relating to a specific country. However, it is really tough to get the best report without having a proper analysis. Therefore, we should always strive to stay up-to-date with the latest news possible by following important trading portals.