What Reports Are Important in Currency Trading?
Whether you are a beginner or an advanced trader, you should know that certain reports may affect the price behavior of the currency markets. Your number one focus as a forex trader should be to look for what the voting members of the central banks are looking at and on what they are basing their decisions to adjust interest rates.
FOMC stands for the Federal Open Market Committee. Thats right, the releases of the FOMC meeting announcements are important as well as the minutes of their last meeting. The minutes are released within two weeks of the last FOMC meeting.
FOMC consists of the seven governors of the Federal Reserve Board and five Federal Reserve Bank presidents. FOMC meets eight times a year to determine the near term direction of the monetary policy.
Wall Street anxiously watches these meetings. Changes in the monetary policy especially the interest rate changes are announced immediately after the FOMC meetings.
Feds Beige Book is important. Watch the report and the speaking engagement of the voting members of the FOMC. The other important report is the individual Fed District Business Survey. This gives you the clue as to what their intentions are and what their concerns are.
The Beige Book is a combination of economic conditions from each of the 12 Federal Reserve regional districts and is named Beige book due to the color of its cover. This report is usually released two weeks before the monetary policy meetings of the Federal Open Market Committee (FOMC).
These meeting are roughly scheduled six weeks apart. If the Beige book portrays an overheating economy or inflationary pressures, FOMC may decide to increase the interest rate in order to cool down the economy. This report on the economic conditions is used in the FOMC meetings to set the interest rate policy.
If the economy is in recession just like now days and the Beige book portrays economic difficulties, FOMC may lower the interest rate in order to stimulate the economy. The other economic report that has a huge impact on the currency markets is the NFP report. NFP stands for Non Farm Payroll.
The unemployment rate is a strong indicator of a countrys economic strength. When unemployment is high, the economy maybe weak and its currency may fall in value. Non farm payroll employment tallies the number of paid employees working part time and or full time in the national public and private sector.
There are two versions of the NFP report. One is a weekly report and is released every Thursday. The other is the monthly report that is more influential and is released on the first Friday of every month.
So watch out for a situation that reveals a major change in the interest rate policy, a surprise in the employment growth or a recession in the US economy, we should see the dollar move against other major currencies. This information can help you establish your dollar bias. - 23305
FOMC stands for the Federal Open Market Committee. Thats right, the releases of the FOMC meeting announcements are important as well as the minutes of their last meeting. The minutes are released within two weeks of the last FOMC meeting.
FOMC consists of the seven governors of the Federal Reserve Board and five Federal Reserve Bank presidents. FOMC meets eight times a year to determine the near term direction of the monetary policy.
Wall Street anxiously watches these meetings. Changes in the monetary policy especially the interest rate changes are announced immediately after the FOMC meetings.
Feds Beige Book is important. Watch the report and the speaking engagement of the voting members of the FOMC. The other important report is the individual Fed District Business Survey. This gives you the clue as to what their intentions are and what their concerns are.
The Beige Book is a combination of economic conditions from each of the 12 Federal Reserve regional districts and is named Beige book due to the color of its cover. This report is usually released two weeks before the monetary policy meetings of the Federal Open Market Committee (FOMC).
These meeting are roughly scheduled six weeks apart. If the Beige book portrays an overheating economy or inflationary pressures, FOMC may decide to increase the interest rate in order to cool down the economy. This report on the economic conditions is used in the FOMC meetings to set the interest rate policy.
If the economy is in recession just like now days and the Beige book portrays economic difficulties, FOMC may lower the interest rate in order to stimulate the economy. The other economic report that has a huge impact on the currency markets is the NFP report. NFP stands for Non Farm Payroll.
The unemployment rate is a strong indicator of a countrys economic strength. When unemployment is high, the economy maybe weak and its currency may fall in value. Non farm payroll employment tallies the number of paid employees working part time and or full time in the national public and private sector.
There are two versions of the NFP report. One is a weekly report and is released every Thursday. The other is the monthly report that is more influential and is released on the first Friday of every month.
So watch out for a situation that reveals a major change in the interest rate policy, a surprise in the employment growth or a recession in the US economy, we should see the dollar move against other major currencies. This information can help you establish your dollar bias. - 23305
About the Author:
Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading stocks and forex. Trade The Forex News. Learn Forex Trading.
posted by Mr. Forex at
6:41 AM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home