Key news for forex trading.

The main source for trading based on fundamental analysis is financial and economic news; it is they that have the greatest impact on changes in the exchange rate.

Moreover, this category of factors does not equally affect the price of a currency; one piece of news can cause a jump of 50-100 points or even change the direction of the main trend, while another will go completely unnoticed.

Therefore, the main news for Forex trading is usually classified by degree of importance.

As sources of signals, it is advisable to use only the most significant events that can cause significant changes in the course. What most strongly influences the Forex trend ?

• Interest rates of national banks - their changes are almost always reflected in the foreign exchange market; a decrease in the rate almost always leads to a decrease in the exchange rate of the national currency.

• The level of employment or unemployment – ​​characterizes changes in the country’s economy; an increase in unemployment leads to a fall in the exchange rate of the national currency and vice versa.

• Inflation – it is clear that a message about a sharp increase in its level will definitely cause a downward trend in any of the currencies.

• Business activity index – also ranks not last in terms of influence on changes in currency prices on the international market.

• Real estate sales - this indicator is especially noticeable in the US dollar exchange rate.

It is clear that an increase in activity in the real estate market always indicates an upturn in the national economy, and therefore the reliability of its monetary unit. • Other troubles – publication of messages about various catastrophes, natural disasters, defaults and other troubles has a much greater impact on the exchange rate than news, the release of which is indicated by the Forex calendar .

It is an unexpected message that most often causes a trend reversal, and, as a rule, in a downward direction. Therefore, it is advisable not only to keep track of the economic calendar, but also to have a subscription to the main news. Only the last of the listed points can be used without confirmation in Forex trading; for the rest, transactions should be opened only if the news confirms the direction of the trend, otherwise the reversal must be confirmed by means of technical analysis.

For example, there is a downward trend in the EURUSD currency pair, a message comes out about a fall in the business activity index in a number of European countries, in this situation you can safely open a sell transaction. If in this situation, on the contrary, positive news is received, for example about a decrease in the inflation rate, we open a deal only after the trend breaks through the resistance line.