Forex Beginners Guide

IMPORTANCE OF THE ECONOMIC DATA

1  The announcement of a given result is not expected to influence a currency and, most likely, its publication will be little more than a statistical fact

2  The announcement of a given result is expected to influence a currency for the current session at most

3  The announcement of a given result is expected to influence a currency for a day, a week or even a month

POSSIBLE INFLUENCE ON AN EXCHANGE RATE 32

→  The output of the economic indicator (presumably) does not render action on an exchange rate

↑  The output of the economic indicator will (presumably) cause growth of an exchange rate

↓  The output of the economic indicator will (presumably) cause a decline of an exchange rate

↓↓  The output of the economic indicator will (presumably) cause strong (very strong) decline of an exchange rate

↑↑  The output of the economic indicator will (presumably) cause strong (very strong) growth of an exchange rate

?  It is very difficult to predict movement of the currency after the publication of the data (more often it happens before publication of carryovers from sessions of central banks, statements of large political figures, publications of economic reports (the Beige book (USA), Tankan (Japan), etc.)

As you can see, brokerages will try their best to help you with all kinds of trading information. In time, you’ll be able to understand everything very clearly.