Forex Christmas Holiday
5 Forex News Reports Successful traders Devour
If you are going to be a successful Forex trader, then part of what it means to learn profitable traders currency already know. One of the main foreign exchange market movements are the economic reports of each nation.
This is not restricted only to the United States either. Traders seeking in the Yen, British Pound, Canadian Dollar, or Euro (or any currency, for that matter) consider the reports of economic news released by each of these nations.
There are many minor economic reports, some of which may be extended to larger reports (see the bubble U.S. Housing, for example), and while the "minor" reports are useful, this will concentrate on the Big Five, because these are the five main reports economic take the strongest and most immediate impact on the Forex Market.
These are also the five reports that are processed by the most traders, so being able to keep track of these are critical, if you will be able to keep a finger on the pulse of the forex market.
The five major reports economic to track are:
1. Unemployment / Non-Farm Payroll Reports
2. Interest Rates
3. Consumer price index
4. Trade Balance (Surplus vs. Deficit)
5. Retail Sales
Unemployment / Non-Farm Payroll Reports
No matter what you trade, is always one of the most important reports on the economy of a particular area. A low unemployment rate is one of the strongest indicators of a strong economy and robust. Similarly, the opposite also applies. A country with a high rate of unemployment is going through difficult times.
Surprises in the numbers expected unemployment may have a strong effect on the forex market, too. For example, if the unemployment rate is expected to be around 6.5% for the nation, and the report comes with a 4.9%, after the national currency will strengthen because of the unexpected good news.
Interest Rates
interest rate changes directly affect the strength of a currency. A higher interest rate usually cause a stronger currency because it will attract foreign investors and traders. Interest rates are a major key influences on the momentum of a currency either up or down, especially since the carry trade is still very popular among forex traders.
Consumer Price Index (CPI)
The Consumer Price Index is a monthly report that measures prices across the country and compares with wages. This means basically keeps track of inflation, which is an important factor in the health of any economy. A sudden jump in inflation is not good news, and some countries (Zimbabwe) can be quite disastrous, so keep an eye on these reports when you leave.
Balance of trade
The balance Commercial refers to a nation's trade surplus and / or deficit. This measures the amount of exports from one country compared to how much that matters. A deficit media that provide more than you send, while a surplus is the opposite. Many times you may hear "trade deficit", referring the United States, but this is not necessarily bad – it depends on the situation and why the balance is tilted the way it is. This is also a monthly report in the United States.
Retail Sales
A nation report retail sales may be the best indicator of how the common person feels about economy. In the U.S. this is a monthly report on how sales go to individual firms. Some parts of the campaign is going to be much busier than the others. December, for example, always expected to have great retail sales due to Christmas holidays.
Knowing what these reports are and how they affect market will help you make better decisions fundamental to the negotiation of the currency.
About the Author
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FOREX VIDEO REVIEW: London Session December 29, 2008