Economic indicators and economic calendar- Free Training Course in Forex – Lesson 21

The currency does not become weak or strong randomly , because the currency's strength depends on the economic strength of the country claiming the currency, and are judged on the strength of the economy through some economic indicators, which are monitored in the market by market analysts, and when it changes the results of these economic indicators across months year, the value of the currency will fluctuate, and this is a currency is considered  an agent representing the state in front of market analysts and traders.

Economic Indicators?

We also call it data, or statistics, or reports, or results, or Economic Indicators news.

It is a set of results and news that is released at specific times often (monthly, or quarterly, or annually), and these data reflect a picture of the financial situation, social or general shape of the country's economy her currency.

Come take an example...

If industry and financial companies in the country is moving towards progress and the exposure of these companies and sectors positive results on an ongoing basis, it is expected that the currency movement of this country going for the better and people will want to buy the currency.

For example, the U.S. dollar achieves profits strongly, because the U.S. economy is growing and strongly wins!!

When continue to rise in U.S. interest rates, the value of the dollar continues to rise against other currencies, because whenever the interest rate on the currency raised the demand for purchase increased.

Here our analysis of the basic currency for the U.S. dollar was based on the results of the reports of U.S. interest rates, which encouraged traders to buy the U.S. dollar against other foreign currencies.

Who issued this data?

Every country in the world has a set of such indicators and economic statistics, and the results of these statistics are alarming indeed and influential on the economic situation of the country of which the reports and the country related with it, these data are issued from various agencies of the government or the private sector in the form of expected statistics by both in accordance with a timetable and specific dates issued them.

Where do I find news economic indicators!

Such reports can be found in so-called “Economic Calendar.

Economic Calendar:

Schedule of Forex Economic Calendar

It is the guide tells us the dates of issuance of the results of economic data and displays the news every day or every week.

The table of economic news is the schedule provides for Forex trader all economic indicators news dates and presents the results of this news time of issue directly, and contains a description of all economic events and shows the importance of each event and its impact on the market of between (weak, medium, or high impact) and also displays the Show expected results numbers, in addition to the previous results of the currently actually directly from the real market currency traders who will steer toward the purchase or sale among major currencies.  

When the market moves?

The price of the currency is the balance between "supply and demand"

But when swinging the balance between its sides?

The balance swinging between the sides, when the results of the actual news of the economic indicators issued, provided that they come to is what was expected, swing happening here.

In other words, when the result is different from the actual result of the expected economic indicators.

Why does this swing happen?

The reason is the search for a new rate to achieve a balance between demand and supply again after the release of the results of economic news.

Why take advantage of that swing that occurred between supply and demand?

Oscillating prices fluctuate and making them tend to climb "so we buy currency"

Or moving to the "landing" we sell the currency, "according to the news release the actual publication.

·         If the demand is less than supply, it leads to lower prices.

·         If the application is the most powerful display it leads to higher prices.

The question now... How we behave with the issuance of the news when the actual result to it?

Or in other words, what is the reaction of the market on the basis of the issuance of the news!

If the actual result was better than forecast (disposition of purchase) if the economy was good currency.

If the actual result was worse than the expectation (dispose of sale) any currency devaluation.

If the actual result is equally divided with the expectation (not acted) and say that the market has accepted the expectation will not move.

·         If the actual result was worse than the previous, but the actual data look like the best (act be buying the currency) market will treat as a result of unexpected strong reaction in the case if the currency in the development of economic growth.

·         If the actual result was better than the previous, but actual data is considered bad (disposition be selling currency) any depreciation of the national currency, and the market reaction will be strong and will treat as an unexpected result if the currency in the development of economic decline.

Now, to tips on the basic principles for economic news agenda

Which will help you in trading when you read the economic news?

I... Focus on the most important economic news

It Is the first step and where the focus is on the most important economic indicators, high-impact, because the number of indicators, which announces its results a day countless it is impossible to follow them all, do not waste time reviewing the indicators are weak influence and care indicators, which took fame over the years and that investors start trading in the time of the actual results.

II... know the type of news awaited the announcement of the results

The second step is to understand the meaning of economic indicator and a quick overview about, for example, it may be news about inflation, or interest rates or non-agricultural employment or employment etc...

If the news about the announcement of the new interest rates may know that the higher the percentage of Forex interest rates for the currency, accept people to buy the currency.

III... See the results of the economic index for the previous months

Read the results of the news and reports for the months previous, and what was the impact on the market to be able to link the events, and after a period of following up may be 3 months at the most will be the data familiar to you and you'll learn about their relationship to the economy, and generally every economic indicator will be displayed next to the table Calendar Some reports Previous him then please read it.

IV... Pay attention to the moment the news is released

You must compare the actual results and the expected results, as we explained to you previously.

And remember that there are such well-known in the capital market, " he says: Buy and sell facts expectation”

We believe that the success of this ratio method is 50 % to 50%, then we recommend in the Forex market, but are advised to trade in a strategic manner " train traders " any ride the train with deals traders, according to the news in the sense that intervention after closing the candle news after the issuance of the news because it gives perfect opportunity safe rather than risk.

Added to this must be understood why the report was released the news this result!!

For example, if there was the news has been issued , up from the expected 0.4% , why this increase came despite the fact that he was the expected 0.3% Perhaps the reason was the result of increased assembly last month , which was 0.1 % , for example.

V... Watch the currency pairs, especially in the opposing direction

After you became having everything, you have to check the prices of non-dollar currencies (CROSS RATES) and must know that the value of the U.S. dollar against a particular currency may change sometimes due to changes in the value of the currency against another currency other than the dollar.

VI …the link between technical analysis and news analysis

There are many ways of trading the news and linked to technical analysis but that the best intervention after the close of the candle after the issuance of any news story because it gives the perfect opportunity safe rather than risk, and you know how this strategy train ride traders ".