Once the company has its earnings call or makes its results public and the stock rises on strong revenue, the traders will sell their shares to turn a profit. Buy the rumor, sell the news strategy can be used for trading in different financial markets such a stocks, derivatives, foreign exchange and even commodities markets. Certain major economic announcements can bring additional volatility in the markets, even if it is for just a short period of time. Even the neatest forex or stock chart patterns can temporarily be thrown out of sync by a significant trading announcement, such as the latest unemployment news or changes to interest rates or inflation from a nationwide bank. Traders should be aware that demand for many commodities – and therefore the commodity’s price – rises and falls with the seasons. Seasonal forex trading news and impacts tend to be seen in energy and agricultural commodities, but less so for precious metals.
On the H4 timeframe, the US dollar index has formed a bullish falling wedge. At the beginning of the trading session, the price is testing the upper border of this wedge. Thus, in case of a higher-than-expected Core PCE Price Index m/m, the US dollar will skyrocket against other currencies.
Meanwhile, European Central Bank policymaker Francois Villeroy de Galhau said in a New Year’s address that “It would be desirable to reach the right ‘terminal rate’ by next summer, but it is too early to say at what level” as reported by Reuters. Commenting on the minutes of the Federal Reserve’s December policy meeting, TD Securities analysts noted that officials remained in broad agreement about the need to push the policy stance further into restrictive territory in the near term. Therefore it expects another 50 basis points rate increase in February, and expects 25 bps rate hikes in March and May.
Traders sometimes turn this idea into a trading strategy that draws upon what they believe will happen in the future. If you have any experience at all in the financial markets, then you know that there are an abundance of forex news services available online. Many offer complimentary updates and sensational headlines, while others are subscription-based.
Whether you are trading crude oil or Euros, the important happenings of the day will be addressed thoroughly, in a timely fashion. When it comes to the markets, staying abreast of important economic events and breaking news items is a full time job. Whether one is an active day trader or a long-term investor, the need to be current is one that must be satisfied every single day. The FX Leaders news feed is a great way to stay on top of the evolving global marketplace.
The latest figures from the Bureau of Labor Statistics in the USA revealed that prices over the past 12 months fell by a significant 0.6% from last month’s data and was also 0.2% down from the 7.3% annualized that was expected by many analysts. Our goal is to provide traders with all the information and tools they need to trade successfully. Our team of professional traders has been testing Forex brokers for over 12 years and has helped millions of traders find the right broker.
USD/CHF Price Analysis: Steadily advances above 0.9350 after breaking a falling wedge
On the US front, Nonfarm Payrolls for December are expected to edge low, estimated at 200K beneath the prior 263K, while the Unemployment Rate is foreseen at 3.7%, unchanged. A resilient US labor market is likely to support the Fed’s decision of hawkish policy continuation for a longer period. Amid a pause in the US Dollar upside ahead of the US Nonfarm Payrolls data, AUD/USD has picked a fresh bid toward 0.6800, further helped by the upbeat China-Australia trade optimism. The pair is up 0.21% on the day, trading at 0.6765, at the time of writing. With analysts covering the Asia-Pacific, European, and U.S. trading sessions, you will never be out-of-the-loop when it comes to FX news. From New York to London to Tokyo, our analysts are on the clock, breaking down the markets in real-time.
However, if the news event involves Britain and another country, it may be better to trade that pairing to target that news more specifically. If there’s a rumor among traders about an upcoming news event, chances are that the market has already moved in the direction of the new or the information is already “priced-in”. If that’s the case, the market may not move as much as expected when the news is finally made official and the trader employing the strategy may not make as much of a profit. Currencies of countries that are major exporters of raw materials or commodities can be impacted by news forex trading news, as this affects the prices of the main commodities that they produce. Prices of commodities that affect these currencies can be influenced by issues affecting supply and demand. Solid US payroll data is acting as a twin-edged sword for the oil price.
For example, low unemployment suggests a strong economy, so many would expect the stock market to rise. A decision to lower interest rates could make a country’s currency less attractive, causing it to fall against other world currencies. A manual alternative is to monitor upcoming tradeable events using our economic calendar. This feature can be found on our Next Generation platform and highlights events such as unemployment reports, GDP, CPI and PPI figures, as well as trade reports and sentiment surveys. These events can all have an effect on market sentiment and cause major price swings within the financial markets.
- Get commentary on the Forex and Currencies markets from industry experts.
- By Nell Mackenzie – The top 5% of the world’s hedge fund managers are set to take 80-90% of investor inflows in 2023, according to new research from Agecroft Partners which raises money for hedge funds.
- WASHINGTON – The U.S. trade deficit contracted by the most in nearly 14 years in November as slowing domestic demand amid higher borrowing costs depressed imports.
- We’ve got a handful of CPI releases, the FOMC minutes, and of course the U.S.
Traders who are slow to act often provide liquidity for those who are in the know. Those traders then take advantage of either the “rumor” or the “news.” Another example could be that the new itself may not live up to the expectation. For example, in a bear market a company that beats expectations camarilla pivots in its quarterly earnings may still see its stock price fall because the good news may not have lived up to the hype. If the rumor is false, or the market overbuys the asset so that it is no longer undervalued, then news that falls slightly below expectations will cause a selloff.
It projects that the Fed will therefore settle on a terminal Fed funds target rate range of 5.25%-5.50% by May.” The black gold remained inside the woods despite the release of solid United States Automatic Data Processing Employment Change data. According to the agency, the United States economy has generated fresh 235K vs. the expectations of 150K and the former release of 127K. West Texas Intermediate , futures on NYMEX, is displaying back-and-forth moves in a narrow range around $74.00 in the early Tokyo session.
How to use news to trade stocks
The dollar index on Thursday rose by +0.78% and posted a 4-week high. The dollar jumped Thursday after the U.S. labor market showed unexpected strength, which was hawkish for Fed policy and bullish… Our Morningstar equity research reports are updated regularly with new information about company maxfx fundamentals. These are available for a wide range of shares on our platform and can also indicate whether they are considered to be overvalued, fairly valued or undervalued within the stock market. This information may help traders to make a decision on whether to enter a position or not.
U.S. Weekly Jobless Claims Dip To Three-Month Low
With 2022 about to close, it is time to look ahead to some themes to watch in the next year, as well as our usual round of outlandish predictions for 2023. From basic trading terms to trading jargon, you can find the explanation for a long core spreads review list of trading terms here. As capturing a critical trending level has yet to encourage more buyers, it is worth looking cautiously at the dynamics of the coming days. Needs to review the security of your connection before proceeding.
The oil price is struggling to get a direction after a perpendicular fall to near $73.00 from the critical resistance of $81.00. Meanwhile, the Canadian Dollar will also display action on the release of the Employment data. According to the estimates, net addition in payrolls for December stands at 8K against 10.1K released earlier. Going forward, investors will get more clarity on the release of the official US Nonfarm payrolls data, which will provide the broad status of employment. Analysts at Goldman Sachs offer their expectations on the first US Nonfarm Payrolls data release of 2023.