An account forex managed has the potential to be strong driven by forex news events. News in particular for the usd (us dollar) has the potential to affect most rates as it is the world reserve currency with 87% of all foreign currency transactions. You should try to select a limited number of currency pairs to trade. It is important that you are familiar with economic consequences of the currencies you have picked. The important consideration is how the news event compares with the various analysts estimates. News that surpasses the analyst’s estimate will drive the price of the currency up. Minor and exotic currencies can move violently on the basis of any news. Commodity currencies such as the aud (Australian dollar) and cad (Canadian dollar) can react to prices on the commodity markets. Listed below are some of the news items which can drive fx prices.
NFP – Non Farms Payroll
The biggest news item is the NFP or Non Farms Payroll which is published on the first Friday of every month. NFP is an estimate by the department of labour in the growth of employment in both the private and public sector. It is a leading indicator and helps predict the future direction of the economy. Trading the NFP can be very hard as prices will swing violently after the news is announced. https://capetownacupuncture.com/
Purchasing Price Index
This figure is an estimate from purchasing managers of the future direction of manufacturing activity. The figure is released by the Institute for Supply Management. This can be a leading indicator in that it attempts to calculate the future direction of the economy. If economic activity has become slow for a time period, traders will look at the changes in the purchasing price index as an early indicator of a change in fortunes for economic activity.