Economic news affects currency markets around the world. Economic news can make or break a currency’s price and affect its trading environment. It includes changes in interest rates, inflation, unemployment levels, and retail income. These announcements inform traders of recent changes in the economy and can influence market sentiment. To trade successfully in forex markets, you must keep abreast of current economic news. Here are some tips on how to stay abreast of the latest economic news.
NPR’s economic news covers the U.S. economy, including the World Bank and Federal Reserve. They offer commentary on economic trends and provide RSS feeds and podcasts. Whether you’re looking for regional news or national economic news, NPR can help you stay on top of the market. And if you’re looking for more general economic news, you can check out the Buffalo-Niagara Falls Economic News, produced by the Economics and Finance Department at Canisius College.
Despite the complexity of monetary policy, it’s often difficult to predict how the Federal Reserve will act in the future. Any forecasts for Federal Reserve rate hikes will be bullish for the U.S. Dollar and bullish for USD/JPY. Another important economic data to keep an eye on is the nonfarm payrolls report, which measures the number of jobs added in the corporate sector in the U.S. Consequently, it is a leading indicator of the employment situation in the U.S.
Another useful tool for news traders is a financial television network. Financial TV networks provide around-the-clock coverage of major news. The latest news is updated frequently on the networks, and institutional contacts explain the market’s movements to the public. If you have an 80-inch flat-screen TV in your bathroom, you can immediately monitor currency market trends. The market is not as erratic as it looks. Traders who are interested in a specific news release can benefit from this.
Besides economic news, it’s also helpful to know how to interpret it. In the world of forex trading, the Purchasing Managers’ Index (PMI) is a key economic indicator to pay attention to. The Purchasing Managers’ Index, Housing Starts, and Capacity Utilization Rate are all economic indicators that should be included in your fundamental analysis. There are many other economic indicators you should pay attention to, but these five are an excellent start.
Another important economic news is the Consumer Price Index. The Consumer Price Index (CPI) is an important indicator for measuring inflation. It typically hovers between 55 and 60 during a normal growth cycle. The trick to looking at this indicator is to follow the trend. A continuous rise in the PMI will be considered positive news for the currency’s associated country. For example, if the UK’s PMI rises from 52 to 55 over the past few months, the US PMI may go from 52 to 53 and vice versa.
Inflation in the European Union and the United States is converging. In March, the European Union reported a 7.5% increase in consumer prices, while the US reported a 2.5% increase. The main culprit in these increases was the spike in energy prices caused by war. This is good news for European markets. Overall, the economy is showing signs of improvement, but the news is still vital for investors. But remember to monitor the data before investing.
The US Federal Reserve is gradually moving toward tighter monetary policy. They have been winding down asset purchases while raising short-term interest rates. The Fed has signaled its next rate hike of 50 basis points. Eventually, they will begin selling their assets. The Fed has bought massive amounts of government bonds and mortgage-backed securities since the beginning of the financial crisis in March 2020. While the Fed’s aggressive actions have encouraged investors, this new policy shift could lead to a gradual decline in inflation.
As globalization continues to be a drag on China’s economy, the country’s economy is still growing – albeit slowly. This growth, however, is due to slow consumer spending and sluggish industrial production. Construction and property market activity in China fell sharply, reflecting the stress placed on the country’s huge property market. Even retail sales declined in March. Further, the country’s unemployment rate is still falling, making globalization more difficult to cope with.