Economical news - the information about the status of national economics of different countries which can influence the decisions of financial markets' speculators. The most part of economic news is published by prescribed schedule specified in economic calendars.
Economic news strongly differs by force of influence on the market. There are economic news which the market simply does not take into consideration, and there are the ones that to exert very strong influence on movements exchange rates. Sometimes certain economical news can appear in the market's focus and then the market's reaction to them will be sharper. It is quite often possible to see a reverse situation: economic news is quite defined, and the reaction there isn't any reaction of the market, or it is aimed to the opposite direction. So, the accents of the market are turned to other direction this moment.
The interpretation of economic news - one of the most difficult and thankless occupations. The matter is that the currency market is always influenced by many factors. Let's remember one of Charles Dow's postulates - the price considers all! Hence it is practically impossible to allocate influence of the single factor. Therefore the market can interpret the same news quite differently depending on the mood of the majority of speculators. Additional decision-making complexity for the individual trader is that he cannot shift the market. He should foresee the actions of the great speculators moving the market and to join them. And the purposes of large banks and funds are not always simple and pellucid.
Economic news is usually estimated from two positions:
from the viewpoint of influence on official discount rate;
from the viewpoint of a status of the national country economics. Besides economic news it is also possible to allocate three groups of the factors influencing the market:
the political ones;
rumors and expectations;
force majeur.
Economic news strongly differs by force of influence on the market. There are economic news which the market simply does not take into consideration, and there are the ones that to exert very strong influence on movements exchange rates. Sometimes certain economical news can appear in the market's focus and then the market's reaction to them will be sharper. It is quite often possible to see a reverse situation: economic news is quite defined, and the reaction there isn't any reaction of the market, or it is aimed to the opposite direction. So, the accents of the market are turned to other direction this moment.
The interpretation of economic news - one of the most difficult and thankless occupations. The matter is that the currency market is always influenced by many factors. Let's remember one of Charles Dow's postulates - the price considers all! Hence it is practically impossible to allocate influence of the single factor. Therefore the market can interpret the same news quite differently depending on the mood of the majority of speculators. Additional decision-making complexity for the individual trader is that he cannot shift the market. He should foresee the actions of the great speculators moving the market and to join them. And the purposes of large banks and funds are not always simple and pellucid.
Economic news is usually estimated from two positions:
from the viewpoint of influence on official discount rate;
from the viewpoint of a status of the national country economics. Besides economic news it is also possible to allocate three groups of the factors influencing the market:
the political ones;
rumors and expectations;
force majeur.
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