Forex traders, who are also fundamental analysts, have to be aware of the recent trading news to predict the price movement in the trading markets. Trading news is very popular among the retailers as it offers opportunities to make larger profits. In addition to this, news updates the retailers with the current economic conditions around the world.
It is proved that news plays the most important role for the businessmen and the growth of businesses. No businessmen can simply ignore the market crash. But you have to know what type of news a trader should focus on. News about the Unemployment rate, Gross domestic product, Price index, etc. is essential to analyze a marketplace like Forex.
Trading News for Forex Traders
1. Rate of unemployment
Maintaining a lower unemployment rate is the most important duty of the central banks. To analyze the market and to predict the ups and downs of a currency, a retailer must go through this section of regular news. Developed and trading countries always release their unemployment rate per month. If the unemployment rate goes lower, the value of the currency increases. When the rate falls below the NAIRU, the banks begin to increase the interest rate.
This is why the unemployment rate plays its role as an important indicator for the traders to analyze the market value.
2. GDP (Gross domestic product) growth rate
GDP (Gross domestic product) is similar to a scorecard. It will determine the net health of any economic condition of the trading market. If you find the GDP rate is too high, then rest assured that the currency will get stronger. As a Forex trader, you must keep your eyes on the GDP of a country to predict the upcoming currency price.
For example, suppose we are dealing with the GBP/USD, and in this case, we will have to focus on the growth of the GDP of both the UK and the USA. After that, we can find out the movement of the pair. The smart Aussie traders always give priority to the GDP as it helps them to take the right trade. As a new trader, you can sign up for a free trial and change your life.
3. CPI (Consumer price index)
This consumer price index will determine the inflation rate of the economy, and an economist knows well how inflation affects a country’s currency value. The monetary policy of the central banks tries to hinder the inflation rate to a specific range, which is predefined. As soon as inflation crosses the range, the central banks increase the interest rate to control inflation.
However, if anyone observes a prediction of growing the CPI, then he can be assured that the news is going to be bullish for the movement.
4. Interest rate – Overnight
Banks also obtain money by borrowing from each other, but they borrow money based on an overnight concept. The central banks always attempt to control the rate by lending money to the market, and they will borrow the money at their fixed overnight rate.
Understanding the monetary policy is quite difficult, but interpreting the overnight news is comparatively easy. This rate is the main reason that controls the fluctuation of the price.
5. Data of Nonfarm Payrolls
The nonfarm payrolls figure will help a trader to measure the availability of new jobs in the corporate field. This data is an important indicator of the employment condition across a country.
6. Petroleum exporting countries and their organizations
Petroleum exporting countries mainly include countries like Saudi Arabia, Iran, Kuwait, and so on. These countries control approximately 44% of the crude oil of the world. Their decisions may either increase or decrease the production of crude oil, which may heavily impact the energy market of the world.
These are the top six pieces of trading news that Forex traders should check regularly. To be a fundamental analyst, these trading news areas will surely help you to analyze the market’s movement.