News and Economic Data That Affect Forex Market Movements

News and Economic Data That Affect Forex Market Movements

21 August 2014, 22:03
Daniel Stein

Welcome traders,

below you'll find a very interesting article about the impact of economic news.

If you want to trade economic news in a comfortable and profitable way you may have a look at our Blueball Trading System


The value of a country’s currency is affected and largely influenced by various economic indicators that reflect how a country is performing.

The macroeconomic events that take place internally and internationally are factors that will have a huge effect on the value of a currency. 

As a forex trader you need to be constantly on top of these data – always ready to read and interpret reports as it is released.

You should be able to do this quickly as well because the market immediately reacts to these economic indicators.

I know of some forex traders who are on a long position but were caught flat-footed when negative economic data was released that resulted in the currency they were trading in to fall in value.

Believe me, it’s not a good position to be in. 

One of the most common questions asked by budding traders is what economic data to look out for. The question is understandable since there is a mountain of data that is released on a regular basis. 

But among forex traders the following indicators and reports are what they often follow. These are the ones that have a strong effect on currency value movements. 

Employment data

Employment data is a strong economic indicator because it shows the level of unemployment in a country. As we all know a high unemployment rate can create a bigger strain on a country’s economy.

Among the employment related data you need to follow are: Unemployment Rate, Unemployment Claims, Employment Change, Non-Farm Employment Change.

Economic data

The Trade Balance and the Gross Domestic Product (GDP) of the major economies and currency leaders are quite important and immediately have an impact on the value of a currency the moment it is released. 

Other economic data that you should also monitor are those that are closely linked to indicating inflation, e.g., the Consumer Price Index (CPI) and the Producer Price Index (PPI).

Central Bank and Policy Makers

The biggest influencers of market movements are, of course, the announcements and policies made by a country’s central bank and the important monetary authorities.

The most important data indicators are the interest rate announcements and monetary policy statements released by the country central banks, for example, the European Central Bank (ECB), Federal Reserve (Fed), and the Federal Open Market Committee (FOMC). 


We hope that you understand the backgrounds of market movements after economic news and if you want to trade such events

in a comfortable and profitable way we recommend to have a look at our popular Blueball Trading System.

Best regards

Daniel Stein


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