News analysis

The other way in the analysis of price movement which is the method which is based on the study of economic and political effects and predicted impacts on the price movement of a currency.If technical analysis is based on the study of price movement only, the analysis is based on news analysis of the causes of this movement.And economic and political effects may be long term or short term.Influences long-term economic is what he is studying economic experts and by analyzing the economic situation of the state and compared the economic situation of other countries in an attempt to estimate the impact on currency rates, and such an analysis requires economic background and broad is not available to non-experts, such an analysis is outside the functions of stores normal trading currencies on a daily basis and on the basis of quick transactions, but is within the interests of large financial institutions are interested can see the exchange rates over the long reach of years before you invest huge sums in the purchase or sale of these currencies.As for the regular stores, the News analysis interested in the following form:Every day the major economies like the United States, Japan, the European Union as a whole and the countries of Europe to countries such as Germany, France, Italy and Britain in private these States a week to issue a lot of economic data for each of them, it affects the data directly in the prices of currencies of these countries.For example: It may be the euro higher against the U.S. dollar price of EUR / USD = .9850, but at the eighth EST (EST) issued U.S. economic data points to the power of the U.S. economy in certain respects, may result in the emergence of such data to the rise of the dollar to become after hours EUR / USD = .9700, for example, Such data enhance the confidence of investors in the U.S. economy, which helps to increase the demand for purchase of shares and American investments, thereby increasing the demand on the dollar, leading to a rise in price against the euro.The opposite happens if the bad economic data for the U.S. economy.Such economic data that affect currency rates for short periods such as the impact of interest to myself currency stores.And sometimes one of the officials in one of the major countries in the economically by issuing a statement that may lead to a rise or fall in the exchange rate.For example: You may authorize the President of the Bank of Japan statement may lead to high or low price of the yen against the dollar, sometimes dramatically.How do I know about the emergence of this economic data and statements?Also, most brokerage firms provide the service shops graphs currency paid or free service, it provides a news service, where shops can through the program graphs of major news and read that link immediately to the stores.There are many sites that offer news service of interest to currency shops free of charge to shops can access these sites and read the news.Do not worry .. This does not mean you are obliged to staring at the computer all day waiting for news or economic data.Data are important economic be known date in advance where you can get from many sites on the agenda of Calendar for the most important economic data that will be issued next week, in the form of a table showing the state that issued the data and type of data and time, experts expect the data to be issued.If there is important data that you already know the time to follow up the result immediate through the news service provided by your brokerage firm or through specialized sites in the news such as the location http://www.forexnews.com/.You are also using the WAP technology and WAP you can read this news by mobile phone or laptop computer by LAPTOP
 What is the most important economic data that are issued?There are a lot of data that is published weekly, we will mention the most important of these data and their impact on exchange rates:Consumer Price Index Consumer Price Index (CPI)An indicator to measure the rise in commodity prices for the consumer. The more this index is larger as compared to the previous month or month to month compared to the same period last year, year to year the impact would be negative for the currency with low price often.For example: if the consumer price index in the United States 3% for the month of December, while the 2.5% in November, this is bad news for the U.S. economy because it means a rise in inflation, could lead such as this news for the low price of the dollar against the following currencies and this compared to a month to month Month to Month (M / M). The comparison with the month of December of the previous year, called the comparison year to year Year to Year (y / y).Product Price Index Producer Price Index (PPI)An indicator to measure the rise in commodity prices for producers and manufacturers in the production inputs. The higher the index down the currency.Retail Sales Index Retail sales indexAn indicator measures the rate of sales in consumer goods, the higher the rate rises because the high price of currency sales evidence on the health of the economy.Index of wholesale Wholesale indexIndex measures the sales of producers who sell their goods in bulk, the higher the rate increase because the high price of the currency wholesale directory on the health of the economy.The budget deficit Balance deficitAn indicator that measures the level in the state budget deficit, the higher the deficit led to a decline rate of this State.Trade balance Trade balanceIt measures the surplus or deficit in exports and imports of the state, the state that have a trade surplus with another country or with the world exports of goods to be more than its imports, and vice versa for the State in which the trade deficit. The greater the trade deficit has led to the state whenever the low rate of its currency.Unemployment rate Unemployment rateIt measures the number of people of working age who are not finding work, the greater the rate of unemployment has led to a decline of the exchange rate as evidence of the weakness of the economy in this country.Jobless claim unemployment benefitsIt measures the number of citizens who receive unemployment compensation from their governments, which is similar to the previous index has the same effect.Consumer Confidence Index Consumer confidence indexAn index measuring consumer confidence in the State the local economy, an important indicator, and more consumer confidence in the economy of their state whenever the price of the currency.Confidence Index Product Producer confidence indexAn indicator similar to the previously unknown, but it measures the confidence of producers and manufacturers in the state economy, and the greater the confidence of producers in the economy was a sign of health of the economy leads to rise in the price currency of the country.GDP Gross domestic production (GDP)An indicator measuring the volume of goods and services produced in the local economy, the greater the volume of production was evidence of the economic activity which leads to the high price of a country's currency.Key interest rate Interest rateAn important indicator of very little impact on the local economy, where he will meet officials at the central banks of each country to determine its key interest rate on loans, which in turn affect the interest rates on loans granted by commercial banks to producers and consumers. The central bank's decision to determine its key interest rate depends on the needs of the local economy and that the officials have at their meetings, either to raise interest rates or downward.The lifting of the key interest rate leads to raise interest rates on loans and therefore reduces the loans requested by the investors of the banks, leading to a reduced pace of production and investment in the country, and cut key interest rates helps to reduce the benefits obtained by the banks when lending money to producers, which helps to increase the demand for loans and thus increase the pace of production and investment in the country.In fact, contrasts the impact of interest rate decision on the exchange rate between the impact of long-term and short-term impact, for the regular stores, we can say that the high interest rates often lead to high and low exchange rate leads to a currency devaluation.Direct intervention InterventionHigh price of the currency of a State has its pros and has a negative on the economy of this state, and disadvantages that the high price of the currency of the impact on exports where they become the goods produced by this country more expensive for other countries, which reduces the import of other nations, including.For example, the price of Japanese yen leads to high prices of Japanese goods for the countries of the world and this result because the decrease of other States of the import of Japanese goods and replace them with goods from other countries and this no doubt would negatively affect the Japanese economy. So it is not always going to be the high price of the currency the hello.Once you find a state that the price of its currency has become very high, which would affect their exports seriously deliberately direct intervention in the currency market where you sell large quantities of currency to reduce the price.For example: When the price of Japanese yen for the price of USD / JPY = 118.00 at a times resulted because the Japanese central bank to sell billions of yen in global markets which increased the supply of and led to the reduction in price, bringing the price of USD / JPY = 120.00, has the central bank so because he found that the high yen will lead to lower Japan's exports of goods.So decision to the Central Bank to intervene in the currency market is an important decision affecting the price of the currency of the State intervene. For example, if I learned through reading the news and economic analysis that the Central Bank of the State will intervene in the case of high rate of its currency for a certain Fissehmk that I make to buy the currency when the price close to this limit because it then may interfere with the central bank and lead to a sharp decline and rapid in the price of the currency.Indicators of major stock exchangesStock Exchange is the place that bought and sold its shares of state companies, for example, New York Stock Exchange is the main place that bought and sold its shares of American companies and the London Stock Exchange is the place that bought and sold when the British stock.Measured by trading activity in stock markets indicators called the Indicators of certain stock exchanges and each has its own stock market index.For example: the Dow Jones DJI is the index which measures the trading activity in the main 30 companies U.S., the height of the cursor is evidence that buyers of the shares of these companies per cent more than the number of vendors, a sign of investor confidence in the U.S. economy and a decline is evidence that the number of sellers for the shares of these companies is greater than the number of buyers, a sign of low investor confidence in the U.S. economy.Thus, the high index Aldajrnz would raise the price of the dollar because it means that buyers of U.S. stocks, which means more demand on the dollar and vice versa.As we all stock index measures the trading activity by:Index is called the London Stock Exchange FTSE Financial Times, which measures the trading activity of the top 100 British companies.The Tokyo Stock Price Index NIKKEI Nikkei called a measure of trading activity of the main Japanese 250 companies.The Nasdaq Composite Index NASDAQ is an indicator measures the trading activity in the top 100 U.S. companies in the Nasdaq, which tend to him by companies within the technology sector as companies.Thus, the greater the price index of what led to the high price of the currency of the State followed by the index.In fact, the most important benchmark interest is the regular index stores Aldajrnz DJI as the rise of this indicator is accompanied by the often high price of the dollar against other currencies.Next in importance NASDAQ NASDAQ.The rest of the stock indexes are rarely of interest to the regular stores have been talking to will make a difference on exchange rates.What we have said previously is for the data and news that have significant economic impact on the currency.As for the political news is vested in the political crises and periods of tension and wars between nations, in mostly the political tension of the State leads to the low price of its currency against the currencies of other countries where keen investors to dispose of their investments in the country suffering from political crises and wars.It is often said that capital is a coward.For example: The Gulf War led the United States and Iraq to a dramatic decline of the dollar against other currencies.