Filter The News For Trading Purpose (part 2)



Continuing my writing earlier about the importance of filtering the news for the purpose of trade , this time I will carry it on the ...



the important thing about news for forex trading


5. Money: this indicator measures three things: the amount of money in circulation in the community in the form of coins or paper, the amount of bank loans to the public and the number of changes in the value of the debt that was not paid by the Government. The increase in the money supply usually leads the stronger currency.

6. Non-farm Payroll: is one of the most anticipated by the news of more fundamental trader. Non farm payroll (issued by the United States) appears once a month on Friday of the first week. Agricultural non-nomina to measure the magnitude of the needs in the payment of wages out of the agricultural sector since the previous month. Increase in non-farm payrolls could lead to currency strengthened drastically in a division of tens to hundreds of points. Therefore non-profit they can be classified as an indicator of the expected very high volatility.

7. The index of prices for the producers (PPI): PPI is an indicator to measure the level of inflation as the CPI. That it is important that if the CPI was on the side of consumers, the PPI measures the rate of inflation from manufacturer. Rising prices of raw materials, transportation costs, and the various components of the production part of the calculation of the IPP. If you increase the PPI, it would strengthen the currency. Ordinary had issued by PPI the 11th of each month at 20 h 30 GMT (13 h 30 GMT). PPI is indicative of high expected voltility.

8. Sales: retail sales recorded a total sales of goods in the sector, but does not include the measurement of services is difficult. Retail sales is a good indicator to measure the level of consumer spending. Bil AEI (index win Averaga) generally increases in retail sales will also increase due to the increase of wages inevitably followed the increase in consumption. When the Forex retail sales will also increase in value. Retail sales have been issued on the 12th of each month at 7:30 (13 h 30 GMT).

T9. trade balance: the balance of trade is the difference between the value of exports less the value of imports from a country. Minus the value of imports showed a larger than its exports and vice versa if it is greater than the positive espor imports. Most of the countries that are developing or trade of developing countries had a negative trade Balance. Still in the money market, the positive value of the trade balance then reinforce the value of the currency of the country.

10. Manufacturing ISM (ISM - MI): Institute of supply management manufacturing index is an indicator of the most important fundamental indicators to measure the rate of manufacturing. Issued on the first day of the period of work for each month, the results of the ISM Sursee - MI is more than 20 manufacturing industries and involves 300 U.S. officials shopping. Read how substantially the same, if the ISM - my experience of course increase was the currency of the country is strengthened.

11. The confidence index (CCI): is an indicator that measures the level of trust in the research of consumption of 5 000 and his vision about the economic prospects in the future. DCI has issued every Tuesday at the end of the month at 22 h 00 GMT (15 h 00 GMT). When the ICC has increased means that consumer confidence is increasing in economic development and resulting in the currency could rise. ICC belongs to flag expected moderate volatility.

12: Rate of interest every month, central banks in each country are always established a policy of interest rates of the Central Bank as a reference point for other banks in the country. Their decision is up, down or stay. Rates of interest ultimately will determine the extent of the interest rates of deposits, credits, savings and a variety of other policies of Fragment-borrowed of the World Bank in this country. We can say that the interest rate is a final action by the Central Bank against different economic conditions that occur in the country.

These types of investments, including the instruments of the money market that is sensitive to changes in interest rates. Especially when there is a change in the rate of interest which is not predictable in advance by the market. Quite simply if there is an increase in interest rates, then you can tell us that the currency should rise dramatically and vice versa in the case of a decrease in the interest rates and weakening currencies would also suffer greatly. Most developed countries keep interest rates to inhibit the rate of parking to the funds of the Bank and not treatment by investing in the real world. On the other hand in developing countries it is usually that the Government prints too much money to finance development activities. Need for policies of interest rates are more competitive to attract much money circulating in the market for savings and fixed deposit rates are attractive.
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