Key news for forex trading.

Financial and economic news are the primary sources for fundamental trading , as they have the greatest impact on exchange rate movements.

However, these factors vary in their impact on currency prices; one piece of news can cause a 50-100 pip jump or even change the direction of the underlying trend, while another piece of news may go completely unnoticed.

Therefore, key news items for forex trading are typically classified by importance. It's advisable to use only the most significant events as sources of signals, as they can cause significant changes in the exchange rate.

So, what has the greatest impact on forex trends ?

• Interest rates of national banks - their change is 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 for any of the currencies.

• The business activity index also occupies a significant place in influencing changes in the price of a currency on the international market.

• Real estate sales - this indicator is especially noticeable in the exchange rate of the US dollar. It is clear that an increase in activity in the real estate market always indicates an upswing in the national economy, and therefore the reliability of its currency.

• Other troubles - the publication of messages about various disasters, natural disasters, defaults and other troubles has a much greater impact on the exchange rate than the news indicated by the forex calendar . It is the unexpected message that most often becomes the cause of a trend reversal, and, as a rule, in the downward direction. Therefore, it's advisable not only to follow the economic calendar but also to subscribe to key news.

Only the last of these points can be used without confirmation in Forex trading. For the others, trades should be opened only if the news confirms the trend direction; otherwise, a reversal must be confirmed by technical analysis.

For example, if the EURUSD currency pair is experiencing a downward trend and a report about a decline in business activity in several European countries is released, a sell trade can be safely opened. If, on the contrary, positive news is received in this situation, for example, about a decline in inflation, a trade should be opened only after the trend breaks the resistance line.