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  1. #1
    Junior Member

    Question Economic Indicators? !!!

    Hi guys, im investigating about the economic indicators and i was wondering if you could help me. My question is, what kind of effect have the most important indicators (like CPI, unemployment rates, unemployment claims, retail sales, etc) in a currency, depending on the information released at the time of those events (like actual>previous)?

  2. #2
    Legendry Member Michael Hodges's Avatar
    they have a net effect long term and individual effect short near term if they are not inline with expectations.

  3. #3
    Master Member Bogdan G's Avatar
    If the indicator value is better than forecast, the currency goes Up or Down
    If the indicator value is worse than forecast, the currency goes Up or Down

    Sorry if my answer doesnt really shed a lot of light, but it fits the question... it takes some years to get it right

  4. #4
    Master Member SeasaltMcFish's Avatar
    At least you can tell that strong numbers mostly create volatility, although even that can be different now and then.

  5. #5
    Senior Member Deanfx's Avatar
    Michael is right, it really depends greatly on the expectations. If the data don’t fit the expectations than we can see significant short term market move, if the data fit exactly the forecast even if the number is significantly changed compared to the previous period than we can see small to no move. Long term effect take place in bigger time frame and move the currencies not immediately after the announcement but many hours or even days before or after it, so difficult to spot. So it is very complex to predict the outcome but the only thing you can know surely in advance is that there will be some volatility, and you can benefit from it if properly trading.

  6. #6
    Active Member RichardD's Avatar
    Quote Originally Posted by Deanfx View Post
    Michael is right, it really depends greatly on the expectations. If the data don’t fit the expectations than we can see significant short term market move, if the data fit exactly the forecast even if the number is significantly changed compared to the previous period than we can see small to no move. Long term effect take place in bigger time frame and move the currencies not immediately after the announcement but many hours or even days before or after it, so difficult to spot. So it is very complex to predict the outcome but the only thing you can know surely in advance is that there will be some volatility, and you can benefit from it if properly trading.
    Pretty much this. It's worth to outline a basic game plan in advance of every week anyway, just by taking notes of the release times of the high impact news at the ForexFactory calendar so you'll know when you can definitely expect high vol.

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