News in Forex can be the following: economic performance, decisions of monetary policy, financial leaders comments, elections, intervention, referendums, war, etc. … all this can lead to an effect which will result in a strong or a weak dollar.
Economic indicators measure the strength or weakness of the economy. By news release actual figures will be compared with previous figures, to find out, there was no expansion or reduction in performance. Economists predict its forecasts on the basis of research and statistics, and try to predict these figures. If we compare the predicted number of the previous number, the market can buy or rumors, or sell the fact later. If the actual amount released will be better than expected, the pressure on the purchase immediately padsime market. If the number of issued will be worse than expected, the market will be less pressure when buying or making profits.
Meeting on monetary policy – a decision that is taken either increase, decrease, or the preservation of neutral interest rates. Each country will have its own political solution based on the countries' economies. Country or will be inflationary or deflationary pressures in the market. Rate increase (hawk) during the inflationary period – negative mood to slow down spending. In this case, the market can anticipate these comments and can buy the rumor and sell the fact later.
Reviews of heads of central banks and financial leaders may be neutral or positive. It can also be a leading indicator for the interest rate decision. If they go out and comments are interpreted negatively, then you may notice a short lighting or liquidation.
presidential elections or the premiership & # 39; er minister can push the parties to ensure to get a strong or a weak dollar. The country may be exporting countries, goods or superfluous, and this will dictate a weaker or a stronger currency.
Intervention is usually used to strengthen or weaken the currency. For example, Japan – exporting country, which, rather, has a weak currency is good for their exports in order to make them more competitive.
Referendums – a popular vote. Some countries will vote on key public issues that can also be a leading indicator of buying and selling rumors fact.
The war will depend on who will be a refuge. Usually the US dollar – the currency is a safe haven in which to go. In the past, USD / CHF had a safe haven, since they & # 39 is a neutral country.
In conclusion, a premonition of news and understanding of why you want to buy or sell the dollar, will give you an advantage in trade in the long term. News Forex can be a strategy to trade the news.
© 2010 EMCFX