News is what moves the markets! Do you know what sort of news is important forex new
News is what moves the markets! Do you know what sort of news is important forex news? The truth is that no one will ever know how the market will react to any piece of information. We trade by guessing; of course to make ourselves feel better we call it analysis and prediction. Let's face it folks, the important news of Forex is really a lot of guess work. There are patterns of course, but if we are so stuck on patterns then shouldn't you be looking at technical analysis instead? After all technical analysts are the ones that believe that history will always repeat itself.
I want to be totally upfront with you people. The reason that the news is traded is because people believe and fear. You see this very plainly in smaller markets like the local stocks markets. One piece of rumor can send shock waves through the market and potentially wipe away millions in seconds. In the currency markets this is not so prevalent. I am not saying that the news do not affect the movements of currencies, they do but it is only for a short moment. If you have been trading long enough and kept your eyes on the news break, you will realize that there is just so much "noise" in the markets daily. If you jump at all the smallest sounds...well you will be doing a lot of exercise then.
The only important news that really have impact in the currency pairs must be news that directly influence the economy. For example for the USD it would be the non farm payroll report. If it comes out and it shows that there has been a rise in the unemployment rate, well you can be sure that it would lead to shocks for the USD.
The important forex news can change the direction of a trend if there are a series of "bad" news or "good" news that come in one after another. For example, lets say the US reserve declares an interest cut and then the non farm payroll shows that there is growth in the economy and we end if the day if a last report that tells of US economic growth. What do you think the USD will be doing? Where do you think the USD will be headed?
These reports can and will affect the long term trend of the currency. That is the power of news. For scalpers, the news also plays a part. Unfortunately as the time frame decreases the risks increases. The reason is that the trader can only see what is in front and cannot see the larger picture. You may be trading against the larger trend for all you know!
My candid advice is to stay away from news trading unless you have a lot of money to burn. All trading plans should come together with technical and price action justifications to complete it. A sole focus on just one aspect is a ticket to failure.
Dr. Joshua Geralds is a successful Investment Specialist with over twenty years experience increasing the income of people world wide. Visit http://www.pipsalot.com to learn how to make steady profits through safe trading and down load your FREE e-book "Money Management" for a limited time onlys? The truth is that no one will ever know how the market will react to any piece of information. We trade by guessing; of course to make ourselves feel better we call it analysis and prediction. Let's face it folks, the important news of Forex is really a lot of guess work. There are patterns of course, but if we are so stuck on patterns then shouldn't you be looking at technical analysis instead? After all technical analysts are the ones that believe that history will always repeat itself.
I want to be totally upfront with you people. The reason that the news is traded is because people believe and fear. You see this very plainly in smaller markets like the local stocks markets. One piece of rumor can send shock waves through the market and potentially wipe away millions in seconds. In the currency markets this is not so prevalent. I am not saying that the news do not affect the movements of currencies, they do but it is only for a short moment. If you have been trading long enough and kept your eyes on the news break, you will realize that there is just so much "noise" in the markets daily. If you jump at all the smallest sounds...well you will be doing a lot of exercise then.
The only important news that really have impact in the currency pairs must be news that directly influence the economy. For example for the USD it would be the non farm payroll report. If it comes out and it shows that there has been a rise in the unemployment rate, well you can be sure that it would lead to shocks for the USD.
The important forex news can change the direction of a trend if there are a series of "bad" news or "good" news that come in one after another. For example, lets say the US reserve declares an interest cut and then the non farm payroll shows that there is growth in the economy and we end if the day if a last report that tells of US economic growth. What do you think the USD will be doing? Where do you think the USD will be headed?
These reports can and will affect the long term trend of the currency. That is the power of news. For scalpers, the news also plays a part. Unfortunately as the time frame decreases the risks increases. The reason is that the trader can only see what is in front and cannot see the larger picture. You may be trading against the larger trend for all you know!
My candid advice is to stay away from news trading unless you have a lot of money to burn. All trading plans should come together with technical and price action justifications to complete it. A sole focus on just one aspect is a ticket to failure.
Dr. Joshua Geralds is a successful Investment Specialist with over twenty years experience increasing the income of people world wide. Visit http://www.pipsalot.com to learn how to make steady profits through safe trading and down load your FREE e-book "Money Management" for a limited time only

News is what moves the markets! Do you know what sort of news is important forex news? The truth is that no one will ever know how the market will react to any piece of information. We trade by guessing; of course to make ourselves feel better we call it analysis and prediction. Let's face it folks, the important news of Forex is really a lot of guess work. There are patterns of course, but if we are so stuck on patterns then shouldn't you be looking at technical analysis instead? After all technical analysts are the ones that believe that history will always repeat itself.
I want to be totally upfront with you people. The reason that the news is traded is because people believe and fear. You see this very plainly in smaller markets like the local stocks markets. One piece of rumor can send shock waves through the market and potentially wipe away millions in seconds. In the currency markets this is not so prevalent. I am not saying that the news do not affect the movements of currencies, they do but it is only for a short moment. If you have been trading long enough and kept your eyes on the news break, you will realize that there is just so much "noise" in the markets daily. If you jump at all the smallest sounds...well you will be doing a lot of exercise then.
The only important news that really have impact in the currency pairs must be news that directly influence the economy. For example for the USD it would be the non farm payroll report. If it comes out and it shows that there has been a rise in the unemployment rate, well you can be sure that it would lead to shocks for the USD.
The important forex news can change the direction of a trend if there are a series of "bad" news or "good" news that come in one after another. For example, lets say the US reserve declares an interest cut and then the non farm payroll shows that there is growth in the economy and we end if the day if a last report that tells of US economic growth. What do you think the USD will be doing? Where do you think the USD will be headed?
These reports can and will affect the long term trend of the currency. That is the power of news. For scalpers, the news also plays a part. Unfortunately as the time frame decreases the risks increases. The reason is that the trader can only see what is in front and cannot see the larger picture. You may be trading against the larger trend for all you know!
My candid advice is to stay away from news trading unless you have a lot of money to burn. All trading plans should come together with technical and price action justifications to complete it. A sole focus on just one aspect is a ticket to failure.
Dr. Joshua Geralds is a successful Investment Specialist with over twenty years experience increasing the income of people world wide. Visit http://www.pipsalot.com to learn how to make steady profits through safe trading and down load your FREE e-book "Money Management" for a limited time only

toThe Australian dollar continued to strengthen against is currency counterparts this week and is poised to mark its longest monthly winning streak since December 1989 as investors ramp up long-term expectations for higher borrowing in the $1T economy. Credit Suisse overnight index swaps are up 191bp in August after the Reserve Bank of Australia curbed speculation for further easing, and the interest rate outlook may continue to trend higher throughout the second half of the year as the central bank anticipates economic activity to expand at an annual rate of 0.5% this year. However, China’s State Council announced plans to limit new lending and restrict overcapacity in major industries including steel and cement after pledging to increase capital requirements for banks earlier this month, and policy makers may take further steps to ‘guide the healthy development of industries’ as the economy stands at a ‘critical period.’ The shift in government policy spurred fears of a slower global recovery as the world’s third largest economy looks to scale back on consumption, and fading demands from China, Australia’s biggest trading partner, is likely to hamper the outlook for future policy as the RBA maintains a cautious tone. At the same time, stocks in Asia/Pacific slumped throughout the week, with the Shanghai Composite index posting is fourth consecutive weekly decline, and the rise in risk aversion could temper the rally in the AUD/USD as investors weigh the outlook for a sustainable recovery. At the same time, aussie-dollar forex options have shown market sentiment has been extreme for some time, and suggests a major pull back is underway as non-commercial futures traders remain net-long on the Australian dollar, and fears of a slower return to growth paired with the rise in risk aversion could weigh on the exchange rate in the month ahead.Nevertheless, a Bloomberg News survey shows all of the 17 economists polled forecast the Reserve Bank of Australia hold the benchmark interest rate at the 49-year low of 3.00% next week as economic activity improves, and commentary following the rate decision may instill an enhanced outlook for future policy as the central bank is widely anticipated to maintain a neutral policy stance throughout the second-half of the year. Moreover, market participants project economic activity to expand for the second consecutive quarter, with economists forecasting the annual rate of growth to increase 0.7% from the previous year, and the data may drive the exchange rate higher as growth prospects improve. However, the trade deficit is projected to widen to 880M in July from -441M in the previous month, and the slump in global trade may weigh on the outlook for future growth as exports account for more than 20% of GDP. - DS

3.00% next week as economic activity improves

The Australian dollar continued to strengthen against is currency counterparts this week and is poised to mark its longest monthly winning streak since December 1989 as investors ramp up long-term expectations for higher borrowing in the $1T economy. Credit Suisse overnight index swaps are up 191bp in August after the Reserve Bank of Australia curbed speculation for further easing, and the interest rate outlook may continue to trend higher throughout the second half of the year as the central bank anticipates economic activity to expand at an annual rate of 0.5% this year. However, China’s State Council announced plans to limit new lending and restrict overcapacity in major industries including steel and cement after pledging to increase capital requirements for banks earlier this month, and policy makers may take further steps to ‘guide the healthy development of industries’ as the economy stands at a ‘critical period.’ The shift in government policy spurred fears of a slower global recovery as the world’s third largest economy looks to scale back on consumption, and fading demands from China, Australia’s biggest trading partner, is likely to hamper the outlook for future policy as the RBA maintains a cautious tone. At the same time, stocks in Asia/Pacific slumped throughout the week, with the Shanghai Composite index posting is fourth consecutive weekly decline, and the rise in risk aversion could temper the rally in the AUD/USD as investors weigh the outlook for a sustainable recovery. At the same time, aussie-dollar forex options have shown market sentiment has been extreme for some time, and suggests a major pull back is underway as non-commercial futures traders remain net-long on the Australian dollar, and fears of a slower return to growth paired with the rise in risk aversion could weigh on the exchange rate in the month ahead.Nevertheless, a Bloomberg News survey shows all of the 17 economists polled forecast the Reserve Bank of Australia to hold the benchmark interest rate at the 49-year low of 3.00% next week as economic activity improves, and commentary following the rate decision may instill an enhanced outlook for future policy as the central bank is widely anticipated to maintain a neutral policy stance throughout the second-half of the year. Moreover, market participants project economic activity to expand for the second consecutive quarter, with economists forecasting the annual rate of growth to increase 0.7% from the previous year, and the data may drive the exchange rate higher as growth prospects improve. However, the trade deficit is projected to widen to 880M in July from -441M in the previous month, and the slump in global trade may weigh on the outlook for future growth as exports account for more than 20% of GDP. - DS

The Canadian dollar, Australian dollar

The dollar was mixed against the majors in the Wednesday session, largely confined within recent ranges in lackluster trading. The greenback recovered from its session lows versus the euro at 1.4350 to hover near the 1.4230-level, while pushing the Canadian dollar just shy of the 1.10-figure. New home sales posted a strong reading in July, surging by its largest figure in nearly 4-years, up by 9.6% to 433k units versus 384k units from June. Building permits were drifted by 1.1% to 564k units in July. Meanwhile, durable goods orders were sharply better than expected, posting a gain of 4.9% versus a 2.2% decline a month earlier in June. The excluding transports July durable goods orders also improved, edging higher by 0.8% compared with a 1.6% increase a month earlier. In the coming session, traders will look ahead to weekly jobless claims and more importantly, the preliminary reading for Q2 GDP. Weekly jobless claims are expected improve to 565k from 576k a week earlier. Meanwhile, economic growth in the second quarter is expected to post a 1.4% contraction, deteriorating further from a 1.0% contraction in the previous quarter. The Q2 PCE is expected to hold steady at 1.3%.

The Canadian dollar, Australian dollar, US dollar, and euro all face major event risk next week from the most market-moving indicators available: GDP, central bank rate decisions, and employment data, including US non-farm payrolls (NFPs)
• Canadian GDP (Annualized) (2Q) - August 31, 8:30 ETThe Canadian economy is projected to have contracted for the third straight month in Q2, this time by 3 percent. Such a result would indicate a moderation in the pace of Canada’s decline, as GDP fell 5.39 percent in Q1 and 3.74 percent in Q4 2008. Generally speaking, exports are likely to remain a heavy weight on GDP, as the nation posted a record current account deficit during Q2 after exports fell C$9.3 billion, though this is somewhat better than the drop of C$19.9 billion in Q1. The consumer end of the line has shown more improvement, though, as the Canadian economy only lost 13,300 jobs in Q2, compared to a loss of nearly 273,000 in Q1, while retail sales picked up in May and June. Overall, there is potential for slightly better-than-anticipated result, which would likely offer a boost to the Canadian dollar, but if GDP actually falls by more than 3 percent, hopes that the Canadian economy will be one of the first to emerge from recession may be dashed.• Reserve Bank of Australian (RBA) Rate Decision - September 1, 00:30 ETThe Reserve Bank of Australia (RBA) is anticipated to leave their cash rate target unchanged at 00:30 ET for the fifth straight month at 3.00 percent, and the Australian dollar may only respond to a biased monetary policy statement. As it stands, Credit Suisse Overnight Index Swaps (OIS) are pricing in 191 basis points worth of rate increases by the RBA over the next 12 months, compared to 112 basis points a month ago, as economic data has shown slight improvements and the central bank has taken a more hawkish stance. Indeed, the RBA’s last policy statement dropped a line that said that "the outlook for inflation allows some scope for further easing of monetary policy," suggesting that they have no intention of cutting rates any further. If the RBA doesn’t bother to really change the statement, there may not be much of a market reaction, but if there are signs that the central bank is feeling more optimistic on the growth outlook, the Australian dollar could rally.• Federal Open Market Committee (FOMC) Meeting Minutes (AUG 12) - September 2, 14:00 ETThe main event risk for the US dollar on Wednesday will be the release of the minutes from the Federal Reserve’s last meeting on August 12. Following that meeting, the policy statement initially led Treasuries to sell-off and the dollar rallied sharply against the most popular currencies. However, a quick return to risk-taking pushed the greenback lower, as the Federal Open Market Committee said that even though “conditions in financial markets have improved further in recent weeks” the committee continues to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period”. At the same time, because the current "policy actions to stabilize financial markets and institutions, fiscal and monetary stimulus, and market forces will contribute to a gradual resumption of sustainable economic growth", the committee has decided to gradually slow the pace of Treasury securities purchases. A reiteration of these statements has the potential to lift risk appetite further, but on the other hand, indications that FOMC members are feeling uneasy about the outlook for growth or the need to expand quantitative easing down the road could do quite the opposite.• European Central Bank Rate Decision - September 3, 7:45 ETThe European Central Bank is anticipated to leave rates unchanged at 1.00 percent at 7:45 ET. Where the currency ends the day, though, may have more to do with what ECB President Jean-Claude Trichet says during his post-meeting press conference at 08:30 ET. Traders will likely focus on any comments regarding the future of interest rates in the region, including whether 1 percent should be considered the “floor.” That said, the ECB will also be announcing new economic outlooks for the Euro-zone, and if we see any sort of revisions, the euro will likely act accordingly.• Canadian, US Employment Report Day - September 4, 7:00 ET and 8:30 ET At 7:00 ET, the Canadian net employment change may show a decline of 16,200 during August following a drop of 44,500 in July. Furthermore, the unemployment rate is anticipated to have risen to match the January 1998 high of 8.8 percent from 8.6 percent. Since the employment change tends to be a very volatile release, this should have the greater impact on the Canadian dollar, with a sharper than expected drop likely to weigh on the currency and an unexpected positive result likely to push it higher.At 8:30 ET when US non-farm payrolls (NFPs) is forecasted to show job losses for the twentieth straight month in August, though the rate of decline is anticipated to slow further. At the time of writing, Bloomberg News was calling for NFPs to decline by 227,000, which would be the smallest drop in a year. Meanwhile, the unemployment rate is projected to edge up to 9.5 percent from 9.4 percent, but ultimately, the NFP result will be the event to watch as it is extremely volatile and is one of the sole reports that impacts the US dollar from a pure fundamental point of view. A better-than-anticipated result is likely to provide a boost to the US dollar, but it will be interesting to see the impact of disappointing results as weak US data tends to weigh on risky assets and push the greenback higher amidst flight-to-quality.