Economic news has a huge impact on financial markets. Investors who can analyze and use news effectively often have an advantage in the market.
Types of news that affect the market
- Important economic news
- Consumer Price Index (CPI) – Indicative of inflation
- Employment Index (Non-Farm Payroll) – Economic Indicator
- GDP – indicator of economic growth
- Central Bank News
- Adjustment of interest rates by the Fed, ECB, BOE, etc.
- Monetary policy such as QE (Quantitative Easing)
- Political news and world events
- War, elections, economic crisis
Professional news analysis techniques
- Follow the economic calendar – check out the schedule of important figures announced
- Distinguish between real and fake news – Use reliable news sources such as Bloomberg, Reuters.
- Watch the market reaction – not all news will have an impact on prices
summarize
Understanding news and its impact on prices can help you trade more accurately. Be sure to follow news from reliable sources and use this information in conjunction with technical analysis.
