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. 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.
Meanwhile, European Central Bank policymaker Francois Villeroy de Galhau said in a New Year’s address that “It would be desirable to reach the right ‘terminal rate’ by next summer, but it is too early to say at what level” as reported by Reuters. Commenting on the minutes of the Federal Reserve’s December policy meeting, TD Securities analysts noted that officials remained in broad agreement about the need to push the policy stance further into restrictive territory in the near term. Therefore it expects another 50 basis points rate increase in February, and expects 25 bps rate hikes in March and May.
On the US front, Nonfarm Payrolls for December are expected to edge low, estimated at 200K beneath the prior 263K, while the Unemployment Rate is foreseen at 3.7%, unchanged. A resilient US labor market is likely to support the Fed’s decision of hawkish policy continuation for a longer period. Amid a pause in the US Dollar upside ahead of the US Nonfarm Payrolls data, AUD/USD has picked a fresh bid toward 0.6800, further helped by the upbeat China-Australia trade optimism. The pair is up 0.21% on the day, trading at 0.6765, at the time of writing. With analysts covering the Asia-Pacific, European, and U.S. trading sessions, you will never be out-of-the-loop when it comes to FX news. From New York to London to Tokyo, our analysts are on the clock, breaking down the markets in real-time.
Week Ahead in FX (Jan. 2 – : Busy Week for USD with FOMC Minutes & NFP
The latest figures from the Bureau of Labor Statistics in the USA revealed that prices over the past 12 months fell by a significant 0.6% from last month’s data and was also 0.2% down from the 7.3% annualized that was expected by many analysts. Our goal is to provide traders with all the information and tools they need to trade successfully. Our team of professional traders has been testing Forex brokers for over 12 years and has helped millions of traders find the right broker.
The dollar index on Thursday rose by +0.78% and posted a 4-week high. The dollar jumped Thursday after the U.S. labor market showed unexpected strength, which was hawkish for Fed policy and bullish… Our Morningstar equity research reports are updated regularly with new information about company fundamentals. These are available for a wide range of shares on our platform and can also indicate whether they are considered to be overvalued, fairly valued or undervalued within the stock market. This information may help traders to make a decision on whether to enter a position or not.
Whether you are trading crude oil or Euros, the important happenings of the day will be addressed thoroughly, in a timely fashion. When it comes to the markets, staying abreast of important economic events and breaking news items is a full time job. 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.
USD/CAD struggles to find direction as investors seek Canadian employment data for fresh cues. Citing Hans Hendrischke, professor of Chinese Business and Management at the University of Sydney, Bloomberg reported that China could ease its trade … When it comes to modern active trading, truer words are hard to find. No matter if you are a brokerage house meaning trader in Asia, the Middle East, Europe, or the United States, the game is on and opportunity is afoot. By Skerdian Meta, Lead AnalystDuring the Asian session,  is trading at $1,853, halting an uptrend beneath the $1,860 resistance level. The Forex Market Overview page provides a quick overview of today’s Forex and Currencies markets.
Traders can perform company analysis before deciding whether to invest in a stock. This includes analysing its growth rate potential, as well as any potential legal, political or insolvency risks. Financial ratios such as price/earnings along with dividend yields can also indicate whether a stock is a healthy investment right now. Many short-term traders base their decisions solely on technical electroneum price prediction analysis and price charts, regardless of which markets they are trading. It’s common for traders to completely ignore fundamental factors and instead follow price trends, analyse support and resistance levels and weigh up various signals from technical indicators. Buy the rumor, sell the news is an adage that describes a common occurence in most markets, particularly financial markets.
Economic calendar in Asia – Friday, 6 January 2023 – a light one
It projects that the Fed will therefore settle on a terminal Fed funds target rate range of 5.25%-5.50% by May.» The black gold remained inside the woods despite the release of solid United States Automatic Data Processing Employment Change data. According to the agency, the United States economy has generated fresh 235K vs. the expectations of 150K and the former release of 127K. West Texas Intermediate , futures on NYMEX, is displaying back-and-forth moves in a narrow range around $74.00 in the early Tokyo session.
Traders sometimes turn this idea into a trading strategy that draws upon what they believe will happen in the future. If you have any experience at all in the financial markets, then you know that there are an abundance of forex news services available online. Many offer complimentary updates and sensational headlines, while others are subscription-based.
However, if the news event involves Britain and another country, it may be better to trade that pairing to target that news more specifically. If there’s a rumor among traders about an upcoming news event, chances are that the market has already moved in the direction of the new or the information is already «priced-in». If that’s the case, the market may not move as much as expected when the news is finally made official and the trader employing the strategy may not make as much of a profit. Currencies of countries that are major exporters of raw materials or commodities can be impacted by news forex trading news, as this affects the prices of the main commodities that they produce. Prices of commodities that affect these currencies can be influenced by issues affecting supply and demand. Solid US payroll data is acting as a twin-edged sword for the oil price.
Dollar hits four-week high on strong employment data
When trading on news releases, it is important that you are aware of how financial markets work. This happens because traders attempt to predict the results of future news announcements and so, in turn, the market responds by changing the price of an asset. News-based trading is especially useful for volatile markets, for example oil trading. In order to read news events, you should familiarise yourself with economic indicators, which are macroeconomic factors that have an impact on all financial markets, whether it be forex, shares or indices. These can include changes to interest rates, inflation, unemployment levels or retail income for a specific country and these all have a significant effect on the financial markets and overall state of the economy. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
- After observing upbeat cues from ADP Employment Change, it is highly likely that the US NFP will release better-than-projected data.
- Unless the RSI slope aims upward, traders might refrain from opening fresh long positions in the USD/JPY.
- WTI suffered its worst day in 30 yesterday, with a combination of a stronger US dollar, recession concerns and weaker natural gas prices all playing their part for a bearish session.
- Traders who are slow to act often provide liquidity for those who are in the know.
In particular, news trading requires expert fundamental analysis skills, as you will need to understand how certain economic announcements can affect your positions and the wider financial market. From time to time, however, economic announcements are very different from what the broader market was expecting, and this can cause an opposite market reaction. For example, if a central bank hints that rate cuts may be coming, but the currency still rises, there could be other factors in addition to the prospect of interest rate changes. If the currency does not drop on an expectation of a fall in interest rates, then positive sentiment is strong, and this could possibly indicate that it is now a buyer’s market. Our news and analysis section is updated daily with articles on the forex, share, treasury, commodity and index markets, written by our market analysts.
Traders who are slow to act often provide liquidity for those who are in the know. Those traders then take advantage of either the «rumor» or the «news.» Another example could be that the new itself may not live up to the expectation. For example, in a bear market a company that beats expectations atc brokers review in its quarterly earnings may still see its stock price fall because the good news may not have lived up to the hype. If the rumor is false, or the market overbuys the asset so that it is no longer undervalued, then news that falls slightly below expectations will cause a selloff.
With 2022 about to close, it is time to look ahead to some themes to watch in the next year, as well as our usual round of outlandish predictions for 2023. From basic trading terms to trading jargon, you can find the explanation for a long list of trading terms here. As capturing a critical trending level has yet to encourage more buyers, it is worth looking cautiously at the dynamics of the coming days. Needs to review the security of your connection before proceeding.
FOMC Minutes: Inflation is still main risk
Stock market news that has little or no impact on currencies includes earnings reports, management changes, mergers and acquisitions and partnerships. Therefore, it may be easier for some to make more reliable forex news trading predictions on how the market will perform. News related to market sentiment can also influence currency trading, particularly those considered to be safe havens, including the commodity gold, as well as major currencies USD, JPY and CHF. These currencies tend to attract capital during times of turmoil and see outflows when the financial markets settle down. The GBP/USD pair is among the most liquid currency pairs in forex trading. If your trade strategy depends on swift reactions to sudden news events, then that liquidity may help you jump in and out of positions as quickly and precisely as possible.
We introduce people to the world of trading currencies, both fiat and crypto, through our non-drowsy educational content and tools. We’re also a community of traders that support each other on our daily trading journey. Trading the news can be difficult, and the price won’t always move in a way that seems logical or connected to the underlying news event. To get good at it, it’s best to paper trade in a demo account first. Practice buying rumors and selling the news until you are certain that you have a consistently profitable strategy.
U.S. Trade Deficit Narrows Much More Than Expected In November
Once the company has its earnings call or makes its results public and the stock rises on strong revenue, the traders will sell their shares to turn a profit. Buy the rumor, sell the news strategy can be used for trading in different financial markets such a stocks, derivatives, foreign exchange and even commodities markets. Certain major economic announcements can bring additional volatility in the markets, even if it is for just a short period of time. Even the neatest forex or stock chart patterns can temporarily be thrown out of sync by a significant trading announcement, such as the latest unemployment news or changes to interest rates or inflation from a nationwide bank. Traders should be aware that demand for many commodities – and therefore the commodity’s price – 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.
Stocks sag as hawkish Fed cools China rally; awaits US jobs data
No doubt, higher demand for labor force is generally required to cater to bumper demand from firms to address operations, which displays a stellar requirement of oil to execute operations. After the release of the stronger-than-anticipated United States Automatic Data Processing Employment Change data, one thing is for sure the Federal Reserve has a genuine reason to maintain higher interest rates for a longer period. A solid job market is going to remain a major concern for the central bank as bumper demand for labor can be offset by offering higher wages, which is sufficient to spurt the overall demand and eventually the Consumer Price Index . The FX Leaders news feed is a unique venue for all things facing currencies, CFDs, futures, and cryptocurrencies.
The oil price is struggling to get a direction after a perpendicular fall to near $73.00 from the critical resistance of $81.00. Meanwhile, the Canadian Dollar will also display action on the release of the Employment data. According to the estimates, net addition in payrolls for December stands at 8K against 10.1K released earlier. Going forward, investors will get more clarity on the release of the official US Nonfarm payrolls data, which will provide the broad status of employment. Analysts at Goldman Sachs offer their expectations on the first US Nonfarm Payrolls data release of 2023.