Types of fundamental news.

Even if you don't trade news, it's helpful to know the different types of fundamental news and how they influence fundamental market analysis.

And, depending on this classification, how they affect the exchange rates of the currencies being studied.

First of all, all news can be roughly divided into two categories: random and expected. Random news occurs spontaneously, unplanned, while expected news is released on a schedule.

You can find an analog of such a schedule by studying the Forex calendar .

Each news item, in addition to its release time, has several additional parameters.

Unexpected news - this category includes events such as natural disasters, catastrophes, political and economic events (defaults, bankruptcies).

Planned news - interest rates, unemployment and employment figures, elections (when the release date of the results is known), the balance of payments, etc.

What has the greatest impact on exchange rates?

Experience shows that news that was not known in advance has the greatest impact, and such news is often global in nature. For example, a major earthquake affects the economies of several countries at once, and the same applies to economic defaults.

What news should be considered in forex trading?

It would be more accurate to explain how to consider news depending on its type when trading forex.

The release of strong unplanned news usually causes a sharp jump in the exchange rate, with the trend being particularly strong during the first few hours. Therefore, trades should be opened immediately after the news release.

Unlike unexpected events, planned news influences trends even before their release. Often, a multitude of forecasts emerge just hours before the data is released, and it is these forecasts that shape the existing trend. Therefore, the news release itself may not have the expected impact on the trend even if the forecasts prove correct.

You shouldn't completely exclude news from your trading, as fundamental analysis complements technical analysis , especially if you consider news releases when opening and closing trades.