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Short-term currency movements in forex are immediately impacted by:

  • World events
  • Comments, statements by government officials
  • Unexpected changes in economic numbers
  • Technical - charts
  • Stock markets
  • Bond markets
  • Commodity markets
  • Newspaper articles
  • Interviews with influential individuals
  • Rumors

World events

Depending on the severity of the news, a world event can have an immediate substantial impact upon a currency and forex market. The British Pound for example took an immediate beating when the press reported they might have exaggerated Iraq chemical weapons plans. These types of news have high impact on forex market. A general opinion is that a small trader can lose his money during this news. If he works with TK (take profit) and ST (Stop Loss) he will be saved. So keep eyes on world news and events happen. These take major contribution in Currency Movements.

World events

Significant international events can have a substantial impact on the currency and forex market, such as the outcome of news. When the news broke out about the Iraq’s chemical weapons plan. immediately the British Pounds took the beating. Such news have quick effect on forex market. If small traders works with TK (take profit) and ST (Stop Loss) the general view is that the effect of such news results in great lost for them. So keep a vigilant eye on international news and events as they happen. These events and news are foremost contributors in Currency Movements.

Comments, statements by government officials

Direct statements or hints of changes in government policy by government officials will be immediately reflected in currency rates. For example, when former ECB president Dusenberg reiterates that Euro rates are at the correct level, the Euro jumps a quick 30 points. This is also a big factor in forex market but in real some time its work on same day some time on next day. But it takes impact. Government official news has high impact on currency market. Keep strong eyes on Government officials meetings and press briefing. These take major contribution in Currency Movements.

Comments, statements by government officials

When some government officials give some statements regarding government policy, such statements immediately reflects currency rates. For example, when Dusenberg a former ECB president go over to announce that the current Euro rates are in correct level, it immediately follow a quick 30 points jump in Euro.

Unexpected changes in economic numbers

When scheduled economic numbers are not close to what was expected the movements in the currency can be dramatic. We use these opportunities to initiate trades on a regular basis. Example. U.S. employment fell 100,000 versus an expected rise of 30,000; USD fell 1.5% in a few hours. Each day we have some economic data who impact on forex market. These data have quick impact on forex market but these data are not predictable that whether they go to upward or downward direction. These take major contribution in Currency Movements. There are some special strategies to deal in this situation. You will see these strategies in our FxCraz courses.

Unforeseen changes in economic numbers

When well planned economic numbers are not near to what was foreseen, the currency movements can be intense. We make good use of these chances to begin trades on day to day basis. For example when US employment cut down to 100,000 against foreseeable set up of 30,000 USD cut down to 1.5% in a few hours. Every day we find some economic data that influence the forex market. Forex market have fast effect of these data, but whether these data go upward or downward direction is not predictable. Currency Movements depends on these data significantly. There are few distinct tactics to handle this state.

Technical – charts

Breakouts on charts sometimes cause a good move to develop – and sometimes not. Failure to follow through on breakouts often causes a severe reaction in the opposite direction. For example, EURUSD could not hold a break above 113.30 and promptly fell 70 points. These take major contribution in Currency Movements.

Technical – charts

Data analysis on visuals is sometimes work out excellent and sometimes not. Failure to understand data analysis repeatedly causes opposite reaction. For example, if EURUSD is not able to hold a break above 113:30 and sharply cut down 70 points. These are currency movements major contributors

Stock markets

Foreigners have been net sellers of U.S. stocks for quite awhile now. However, the amounts lately have not been great. Do not look for the USD to follow the stock market closely as it did during the boom. You will be disappointed if you do. Forex trading is different from other markets but these take major contribution in Currency Movements.

Stock markets

Non nationals are net sellers of US stocks for some time now. On the other hand the net amounts lately have not be good. Never look for the USD to pursue the stock market watchfully as was during the boom period. You will not be happy because Forex trading is quite different from other markets, since these take foremost involvement in Currency Movements.

Bond markets

Foreigners, especially foreign Central Banks have huge bond holdings. They are very much concerned with capital loss due to rising interest rates. In fact on those days when the 5 and 10 years auction results are announced at 1pm EDT, the currency markets or forex trading are very quiet, especially in Europe. These take major contribution in Currency Movements.

Bond Markets

Non nationals, notably foreign Central Banks are holding huge bond. They are greatly alarmed with capital loss because of increasing borrowing rates. The currency market or forex trading are quiet, notably in Europe on those days when the 5 and 10 years auction results are announced at 1 pm EDT. These take foremost involvement in Currency Movements.

Commodity markets

Some currencies react to significant changes in agricultural product price and gold, Australia for example. Forex market is link with other market as well. Commodity is one of them who make impact on forex market. These take major contribution in Currency Movements.

Commodity markets

Few currencies respond to substantial fluctuations in farming product price and gold, Australia for instance. Forex Market is related besides other market too. Articles of trade is one of them who make significant effect on forex market. These take foremost involvement in Currency Movements.

Newspaper articles, interviews, and rumors

In forex trading all can cause a short-term move in a currency. Because traders have strong eyes on world event’s and news. They make trade and on the rumor they show some quickness and make a wrong trade. Some time its fruitful sometime not. So try to move where mob is going. You may hav e minimum chances to lose. These take major contribution in Currency Movements.

Newspaper articles, interviews, and rumors

In forex trading all can effect a short term shift in a currency. As traders possess strong eyes on world events, news and information. Sometimes they make bad trade due to some unconfirmed reports. Some time its useful and sometime not. Keep moving where the flock is going. That’s how your chances of loss remain small. These take foremost involvement in Currency Movements.

2 comments

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