It’s a busy week for market players everywhere as we price in FOUR central bank decisions and a few key inflation and labor market reports. Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary. MarketPulse is an award-winning news site that delivers round-the-clock commentary on a wide range of asset classes, https://newsbeezer.com/dotbig-ltd-review-2022/ as well as in-depth insights into the major economic trends and events that impact the markets. Opinions expressed herein are those of the authors and not necessarily those of OANDA or any of its affiliates, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, please access the RSS feed or contact us at © 2020 OANDA Business Information & Services Inc. There is also the risk of carrying positions for a longer period of time.
Recent examples include the Greek debt crisis and China market turmoil. Forex markets tend to respond the most to macroeconomic news – the kind of developments that reflect or impact broad economies. Generally speaking, forex traders can look at economic news to assess its impact on interest rates and monetary policy. News that suggests a more hawkish central bank tends to push forex pairs up in value relative to Forex other currencies, while dovish news can cause a currency to depreciate. When trading on news releases, it is important that you are aware of how financial markets work. This happens because traders attempt to predict the results of future news announcements and so, in turn, the market responds by changing the price of an asset. News-based trading is especially useful for volatile markets, for example oil trading.
Daily Forex News and Watchlist: USD/CHF
Traders should be aware that demand for many commodities – and therefore the commodity’s price – rises and falls with the seasons. Seasonal forex trading news and impacts tend to be seen in energy and agricultural commodities, but less so for precious metals. The table below shows some of the main resource currencies and the commodities that affect them. These can be used by traders as a sort of DotBig broker trading signal, as it can help to predict where the price of the currency is headed. A manual alternative is to monitor upcoming tradeable events using our economic calendar. This feature can be found on our Next Generation platform and highlights events such as unemployment reports, GDP, CPI and PPI figures, as well as trade reports and sentiment surveys.
Indian shares opened lower on Monday amid weak global cues and ahead of industrial production and retail inflation readings due later in the day. Forex trading involves significant risk of loss and is not suitable for all investors. The show will focus on global macro issues with a middle eastern context, provide expert analysis of major https://www.forbes.com/advisor/investing/what-is-forex-trading/ market moving stories and speak with the biggest newsmakers in the region. Stay informed with real-time market insights, actionable trade ideas and professional guidance. EUR/USD grinds lower towards 1.0500, printing mild losses to extend Friday’s downward trajectory, as traders await this week’s bumper events during early Monday.
Week Ahead: FOMC, BOE, ECB and CPI highlight a busy week
You should consider whether you understand how ᏟᖴᎠs work and whether you can afford to take the high risk of losing your money. But most trends reverse at some point, and a change in the underlying economics could be the first sign of this. The dollar index on Friday rose by +0.05% on support from higher T-note yields. Also, mostly lower stocks Friday boosted liquidity demand for the dollar. Our goal is to provide traders with all the information and tools they need to trade successfully. Our team of professional traders has been testing Forex brokers for over 12 years and has helped millions of traders find the right broker.
- In order to read news events, you should familiarise yourself with economic indicators, which are macroeconomic factors that have an impact on all financial markets, whether it be forex, shares or indices.
- As with all such advisory services, past results are never a guarantee of future results.
- The table below shows some of the main resource currencies and the commodities that affect them.
- Bank of Canada surprises with 50 bp hike The Bank of Canada delivered a second straight 50-bp hik…
- The Taiwan Stock Exchange now rests just above the 14,700-point plateau although it’s likely to open under pressure again on Monday.
If the news release requires a few days or weeks to materialise, your trading positions may be open over several days. This brings overnight risk and may require you to pay additional holding costs. Therefore, traders should ensure that they have sufficient Forex funds in their account to cover these costs. In particular, news trading requires expert fundamental analysis skills, as you will need to understand how certain economic announcements can affect your positions and the wider financial market.