When it comes to the currency market, most traders will use either technical or fundamental analysis or a combination of both to formulate their strategy, However, even for the casual currency trader, news or event risk can have a dramatic influence on the long and short-term price action of a currency pair.
In this report, we examine the 5 most market moving indicators for the US dollar (we update this report annually) against the Euro. The reason for our focus on the EUR/USD is its status as the most actively traded - and therefore benchmark – currency pair.
Economic Data is Important for Both Fundamental and Technical Traders
It is irrefutable that news or economic data can elicit a sharp reaction from currencies and other financial markets. However not all economic data is created equal. The monthly Non–farm payrolls for example has had a far bigger impact on the US dollar than other perennial top market movers like consumer prices. Indicators rarely keep their same level of influence over a currency though; so it common to see major shifts in the top ranking from year to year.
For example, over the past year, the worst contraction in the US housing market in a quarter century has led indicators like new and existing home sales to crowd out top releases from previous years – like ISM manufacturing. Also, what may create a lasting move in a currency on a day to day basis could be different from what triggers a knee jerk reaction in the US dollar. The top 5 most market moving indicators for the US dollar on a day to day basis are:
1. Non-Farm Payrolls
2. ISM Non-Manufacturing
3. Personal Spending
4. Inflation (Consumer Price Index)
5. Existing Home Sales
Unlike the other numbers, the non-farm payrolls report consistently topped the list of most market moving indicators for the US dollar. As the US economy slowed in 2007 and into 2008, the stability of the labor market was closely watched by all traders and analysts because of its broad ramifications for the overall economy.
ForexGen offers three types of business partnerships:
*Introducing Broker
*White label
*Money Manager
ForexGen Introducing Brokers, White Label and Money Manager holders are recognized as a strategic business partners. The main focus of our service is to satisfy our partner's needs in order to deal with a qualified service and gain a huge income sharing plan.
[ForexGen] provide appropriate services satisfying the needs of all business partner's specified situation and requirements.
0 Comments:
Post a Comment