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Resolved Question
What are news that move the market?
Hello,
There are so many news/releases going around, so much that they flood my ability to screen them. I seriously could not make decent decision with all these news floating around. Can somebody give me and Idea of a specific news/release that is powerful enough to move the market sentiment both long and short term? I am tired of following thousands of news out there.
Thankyou!
Boripat
over 2 years ago
Best Answer - Chosen by Voters
Forex calendar sites usually indicate which reports have a high-impact on price action. These include interest rate decisions, GDP, retail sales, CPI, PMI, industrial production, and employment data. Interest rate decisions and GDP readings in particular tend to have a long-term effect on price action, especially since traders are interested to find out which nation makes it out of a recession and which central bank would hike rates. The impact of some reports also varies from country to country. For instance, data on the housing market has a large effect on USD sentiment because the US housing sector has been badly battered by the global financial crisis and economists are awaiting a recovery. Data on trade and commodity prices tend to affect the comdolls, namely the CAD, AUD, and NZD because these are commodity-dependent and export-driven economies.
over 2 years ago
Answers (3)
Hello there Boripat!
I think HappyPip has given you a lot of examples of what economic reports have a large effect on the market. Let me give you another one! Take a look at price action that occurred last Friday, October 2. Check out what happened during the US session! There was a lot of movement, more specifically following the release of the US non-farm payrolls report! There was an initial move that supported the dollar.. but it faded out and we saw other higher yielding currencies gain!
This is just one of the many reports that can have both a strong short and long term impact on currencies. It's a good thing that you are taking interest to see which ones have a larger impact on the market.
My advice is to be aware of when high impact reports will be released. Follow the economic calender and ForexGump's daily economic roundup on BabyPips to so you know what's coming up!
over 2 years ago
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Reports such as monetary policy decisions (interest rate and other non-conventional measures), employment report (i.e. NFP), GDP, retail sales, CPI, and the like also have a short term impact on currency prices especially if there is a substantial variation from the consensus. In the case of the US NFP report, prices usually swing wildly on both directions before and after the release. You may check out last Friday's price action to get an idea of this.
over 2 years ago
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Hmm, tough question. The thing is.. it depends. On periods of economic growth, reports on say, employment and manufacturing might not even do much to price action but during recessions, these reports are watched very closely. Interest rate decisions, for instance, could hardly move the market when they are already at ultra-low levels. You could see this in action right now whenever the BoJ announces its rate decision. Again, it really depends on the market/economic condition.
over 2 years ago
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