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News releases that impact the Euro
Traders in Forex are simply obliged to monitor the economic releases if they want to successfully trade Forex, as a result of the publication of such releases could greatly affect the markets. Economic reports differ in the extent of its impact, some more important, others pass unnoticed.
Employment in non-agricultural sector (Non farm Payrolls) and the Declaration of Central banks are usually the greatest cause corresponding movements, but the significance of the various news releases is also different for each particular currency pair. With regard to the single currency, these releases are the most important, and they should follow "in both":
the Announcement of the ECB
The ECB, like most Central banks, meets once a month, they set interest rates and discusses the future prospects of the Eurozone economy. The monthly meeting of the ECB governing Council led by ECB President Mario Draghi, is the most anticipated event on the calendars of European traders. The ECB decision may have very important implications for the future of the Euro.
Eurozone GDP
Traders sometimes refer to GDP (gross domestic product), although it is a lagging indicator. However, these releases do make a significant variability in the price of the Euro. If the value of GDP worse than forecast, it is likely that this will lead to the decline of the Euro, as it demonstrates the deterioration of the overall economic picture and increases the chances that the ECB will cut rates. If GDP is better than expected, then the Euro is likely to increase.
The balance of payments of the Eurozone
The balance of payments is also closely followed by the EUR-traders'. The deficit on the current account of the Eurozone generally points to a depreciation of the Euro, while a positive balance, usually cause a Euro rally. Traders are also watching the balance of payments of France and Germany, as these countries make up a significant portion of the Eurozone economy. Large surprises in the data on balance of payments can cause large responses of the price in Euro currency.
Reports from ZEW
European traders watch and reports published by the German research Institute ZEW (Centre for European economic research, located in Hamburg) to monitor levels of confidence and attitudes of business people and analysts in Germany and the Eurozone as a whole. Researchers polled 350 financial experts who answer questions about the situation and prospects in the economy. Indexes ZEW can be used as leading indicators for future price movements. Usually Euro rises on better-than-expected data from ZEW.
Core CPI Eurozone
Inflation is very important for currency traders, as in the determination of its monetary policy, Central banks rely on them. After all, the mandate of the ECB is to control inflation, then the increase in the base CPI means that evrotsentrobank the potential to raise interest rates and this is likely to lead to an increase in the Euro. On the contrary, if inflation is below expectations, the ECB there is a reason to lower interest rates, leading to a weaker Euro.The ECB tries to keep inflation within the 2% threshold, as exceeding it could create economic instability. The EUR-traders ' also will be closely monitoring the German and French indices CPI, particularly German, since data from these two countries provide us with a shared perception of the situation in the Eurozone as a whole.
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| Category: Forex | Added by: (30.10.2017)
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| Views: 384
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