Forex News, Forex Commentary, Currency News, Foreign Exchange

Should the upside momentum hold, prices could test 96.00 this week. Growing expectations over the Bank of England hiking interest rates in the face of rising inflation seem to be supporting Sterling. With inflation jumping to a 10 year high at 4.2% last month, this is more than double the forex news BoE 2% target. Traders are now pricing a 57% chance of a rate hike in December and an 82% chance in February 2022. Forex traders compare the actual data result with the forecast as well as the previous reading. All else being equal the economic news should affect the currency as follows….

forex news

Note the increase in volatility that occurred once the numbers were released. Economic data tends to be one of the most important catalysts for short-term movements in the forex market. The U.S. dollar this week hit its lowest levels against a basket of currencies in more than two years. The dollar is up more than 1.5% against a basket of other major currencies since its recent low, confounding expectations of a tumbling greenback in 2021. Turkey’s currency tumbled almost 8%, putting it on course for its biggest single-day selloff since 2018, after the abrupt ouster of the central-bank governor last week.

Forex News Trading Predictions

It includes the data regarding the number of jobs added, government employees, excluding farm employees, private household employees, and employees of non-profit organizations. Snapshot The U.S. Bureau of Labor Statistics released its closely watched Non-Farm Payrolls numbers for October this morning that showed an impressive increase of 531K new jobs for the month. The favorable number surprised analysts who were expecting a more modest increase of only 450K… Trade your opinion of the world’s largest markets with low spreads and enhanced execution.

forex news

A manual alternative is to monitor upcoming tradeable events using our economic calendar. This feature can be found on our Next Generation platform and highlights events such as unemployment reports, GDP, CPI and PPI figures, as well as trade reports and sentiment surveys. These events can all have an effect on market sentiment and cause major price swings within the financial markets.

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Whether one is an active day trader or a long-term investor, the need to be current is one that must be satisfied every single day. The FX Leaders news feed is a great way to stay on top of the evolving global marketplace. One problem with news trading is that every ​forex broker has a different policy on how they handle trading during volatile news time. Some brokers have what is called a variable spread and some have a fixed spread.

forex news

Other features can also be useful supplementary information such as the Forex Factory sentiment indicator. Get live exchange rates with our all-in-one currency converter, transfer money and track your transfers on the go with our mobile app. Get access to our expert daily market analyses and discover how your currency has been tracking with our exchange rate tools. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider.

Icap Completes Landmark Deal In Weather Derivatives Market In Australia

Economic announcements often involve these particular factors when advising traders of recent changes within the markets. This can have an impact on market sentiment​​, especially if the data announcement is not in line with what the traders had been expecting. Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors. We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading. In regard to the dollar, it remains king of the currency space month-to-date with the Dollar Index consolidating gains around its highest levels since July 2020.

This can cause your trade to be immediately negative, even if you technically received a good price on your entry. Spread widening is often limited and if the spread is too wide, it may be best to abort your trade because the widespread is seen when banks think the risk is too high to be exposed. There is normally a consensus amongst leading economists about what level an economic announcement is likely to come in at.

  • For markets on Thursday as inflation concerns weighed on sentiment.
  • Every day brings a whole host of headlines about the financial markets.
  • You might think that the economic news might be slowing down this week after the week we have just had.

The most common way to trade news is to look for a period of consolidation or uncertainty ahead of a big number and to trade the breakout on the back of the news. After a weak number in September, the euro was holding its breath ahead of the October number, which was to be released to the public in November. A variety of exotic options are available for traders who want to capture a breakout move, but with less volatility than trading the currency pair itself. This year’s furious rally in cryptocurrencies forex news lost steam, knocking prices for bitcoin and ether from recent highs, alongside drops in other risky assets including tech stocks. The dollar is closing in on its highest levels for the year against other major currencies, propelled by investors’ worries about global growth rather than cheer over U.S. prospects. China’s role as a key driver of the Australian dollar is being re-evaluated in global markets, helping send the currency to levels well below where traditional modeling suggests it should be.

Investors Cheer Biden

News that suggests a more hawkish central bank tends to push forex pairs up in value relative to other currencies, while dovish news can cause a currency to depreciate. Traders should be aware that demand for many commodities – and therefore the commodity’s price Eurobond – rises and falls with the seasons. Seasonal forex trading news and impacts tend to be seen in energy and agricultural commodities, but less so for precious metals. The table below shows some of the main resource currencies and the commodities that affect them.

There was plenty of action in the currency space with the dollar, euro, and pound keeping traders well occupied. EURUSD saw a dramatic fall, sliding to its lowest level in 16 months while the Dollar Index rallied to levels not seen in since July 2020. Sterling also caught our attention after data showed UK inflation surged to a 10-year high last month! In the emerging market Forex platform arena, the Turkish Lira stole the spotlight by falling to a fresh record low against the dollar. One of the great advantages of trading currencies is that the forex market is open 24 hours a day, five days a week (from Sunday, 5 p.m. until Friday, 4 p.m. ET). Since markets move because of news, economic data is often the most important catalyst for short-term movements.

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This is particularly true in the currency market, which responds not only to U.S. economic numbers, but also to news from around the world. Here, we look at which economic numbers are released when, which data is most relevant to forex traders, and how traders can act on this market-moving information. For markets on Thursday as inflation concerns weighed on sentiment. With markets mixed and currencies on standby, we used this opportunity to re-evaluate market trends. This is a method of analysing long-term, medium-term, and short-term timeframes to achieve an accurate entry or exit when trading the markets.

The study found that the effect on returns generally occurs in the first or second day, but the impact does seem to linger until the fourth day. The impact on the flow of buy and sell orders, on the other hand, is still very pronounced on the third day and is observable on the fourth day. Turkey’s President Recep Tayyip Erdogan late Monday accepted Credit default swap the resignation of his finance minister and son-in-law, Berat Albayrak, later naming Lufti Elvan his replacement. EUR/AUD is testing a strong area of interest, which could be the jump off point for a momentum move with Australian jobs data ahead. In this year of turkey inflation, food retailers and cellphone companies are rolling out promot ..

Today, he is the owner and lead developer of development agency JSWeb Solutions, which provides custom web design and web hosting for small businesses and professionals. Traders were also betting on the Federal Reserve tightening its monetary policy sometime in the …. Our news and analysis section is updated daily with articles on the forex, share, treasury, commodity and index markets, written by our market analysts. Read more about using fundamental analysis in the consideration of external factors as part of your news trading strategy.

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Changes to non-farm payrolls​​, GDP or inflation data will have a resulting effect on the market. For example, low unemployment suggests a strong economy, so many would expect the stock market to rise. A decision to lower interest rates could make a country’s currency less attractive, causing it to fall against other world currencies. In the 17 hours before the release, EUR/USD was confined within a tight 30-pip trading range.

N26 today announced that its digital banking experience will no longer be available to customers in the US after January 11, 2022. Major stock exchanges, such as Nasdaq and NYSE, claim David Lauer’s classifications of “HFT” and “non-HFT” firms lack any evidentiary support. IG asks the trading community what features/tools and trading strategies they would like to be able to use for backtesting. The UK joins the list of countries seeing higher than anticipated inflation, boosting the prospect of a UK rate hike in December 2021.

This gave the US dollar further momentum, which has been spurred on by last week’s US inflation data showing that inflation was at a multi-year high. Speculation that the Federal Reserve’s tapering of their bond buying program may not quite be enough to stem inflation, and that an interest rate hike may be the only solution, has provided fuel to the US dollar. The US Dollar Index was sitting around 96.00 at the time of writing.

Should consumption drop, then the global economy could lose one of its main drivers of growth. Persistently higher inflation which chokes the global economic recovery may result in a “stagflation” environment, which would be bad for risk sentiment. From a fundamental perspective, even without the SPR release, global oil markets are expected to return to oversupplied conditions by next year. The US Energy Information Administration warned as much just last week, in line with OPEC’s own projections.

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