Forex news - the information about the status of national economics of the different countries which can affect decisions of players in the currency market. The most part of forex news is known to players in advance as it is published by the prescribed schedule specified in economic calendars. Forex news strongly differs by force of influence on the market. There is forex news which the market simply does not take into consideration, and there is one which impact very strongly on the movements of exchange rates.
Calendars of forex news usually contain the previous value of an indicator, the forecast and new value. Reaction of the market to forex news will be the stronger, the more outgoing value differs from forecasted value in one or another direction. Forex news can sometimes conflict with the technical picture on certain currency; then the market's reaction can be even less predicted.
News from the USA has the greatest influence on the market. And reaction of the market to news will be the greater, the more the indicator differs from the forecasted value. There are news which the market simply does not notice, there is one that the market takes into consideration, there are news that can rise the whole storm in the market.
In different cases reaction to the same forex news will not be identical as the market can be ready to the publishing of an indicator with certain value. In this case the say, that the market has given proper weigh to the price indicator in advance. For example, the increase of a discount rate of the Central Bank becomes is known in advance with 80 % probability. Then the market will be ready for the receiving some comments on forex news from officials. It is quite often possible to see and a reverse situation: forex news was published quite defined, and there isn't any reaction of the market, or it is turned to the opposite direction. Hence, the market's accents are displaced in another direction during this moment.
The most strongly affecting and potentially dangerous are the unexpected forex news and acts of God. Nobody is able to predict them. It's just necessary to search the ways to minimize the potential damage from occurrence of similar situations.
Calendars of forex news usually contain the previous value of an indicator, the forecast and new value. Reaction of the market to forex news will be the stronger, the more outgoing value differs from forecasted value in one or another direction. Forex news can sometimes conflict with the technical picture on certain currency; then the market's reaction can be even less predicted.
News from the USA has the greatest influence on the market. And reaction of the market to news will be the greater, the more the indicator differs from the forecasted value. There are news which the market simply does not notice, there is one that the market takes into consideration, there are news that can rise the whole storm in the market.
In different cases reaction to the same forex news will not be identical as the market can be ready to the publishing of an indicator with certain value. In this case the say, that the market has given proper weigh to the price indicator in advance. For example, the increase of a discount rate of the Central Bank becomes is known in advance with 80 % probability. Then the market will be ready for the receiving some comments on forex news from officials. It is quite often possible to see and a reverse situation: forex news was published quite defined, and there isn't any reaction of the market, or it is turned to the opposite direction. Hence, the market's accents are displaced in another direction during this moment.
The most strongly affecting and potentially dangerous are the unexpected forex news and acts of God. Nobody is able to predict them. It's just necessary to search the ways to minimize the potential damage from occurrence of similar situations.
No comments:
Post a Comment