At
forex market, the news in the forex is mostly related to economic
events and announcements. Unlike the stock market, where each company
represents its own micro-economy, currency prices reflect economy as a
whole. Because forex news comes mostly from government and association
sources, it can seem a little boring, and all the acronyms and dates
are tough to keep straight. Forexfactory.com is a well known website to
understand trading news at forex market.You can get a brief idea about
trading news from the following screenshot.
From the above screenshot, I will show a formula how to understand trading news.
In case of “Core CPI m/m”, the formula is “Actual>Forecast=Good for currency”
From the above formula, we will know what is “Actual”, “Forecast” and “Good for currency”.
In
the above screenshot, the “previous” is “0.2%” that means when the
last result was published, the actual rate was “0.2%”. “Forecast” is
“0.3%” that means the result may come “0.3%”. “Actual” means the actual
result of market movement. “Actual” will be the “previous” result in
the next news.
Formula-1. “Actual” > “Forecast”= “Good for currency”.
In
the above screenshot, the “Actual(0.4%)” result is greater than the
“Forecast(0.3%)” that means this news is “Good for currency”.
Formula-2. “Actual” < “Forecast”= “Bad for currency”.
If the “Actual” result is less than “Forecast”, than the news is “Bad for currency”.
Forex
trading news can change price movements of currency pairs and for this
reason it is important to keep track of it constantly.
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