Free market economy definition can be put in very simple terms where it means a system where the buyers and the sellers are the ones that are responsible for all the trade choices that they make. One of the factors that highly influences the prices of currencies in the Forex markets is the economic news releases. Although everything is tied to an economic cycle with its unique data points, some things that are not directly monetary in nature may have an effect on the price of currencies. While the oil boom of the ’70s brought in billions of petrodollars, most of the country’s population remained untouched by the new-found prosperity, thanks to widespread political corruption and catastrophic economic mismanagement. Unrivaled, deep and consistent global economic data coverage, delivered with critical timeliness to power your decision-making. Powered and implemented by Interactive Data Managed Solutions News provided by The Associated Press. In this digital age the need to have news almost as fast as it occurs proved that newspapers may be old by the time it reaches your front door.
Thomson Reuters economic data is available via flexible delivery options including a data feed or our flagship desktop solution – Thomson Reuters Eikon Eikon includes a wealth of cross-asset content, sophisticated charting and analytical tools and integration with Microsoft Office, making it easy to analyze, predict and present your insights.
For example a great depreciation can happen when driven by the panic of bad economic news in a country, most holders of the currency start trading it for more secure assets causing the currency of that country to depreciate; as for the ruble against the U.S dollar in the 1998 crisis in Russia.
The US government is borrowing trillions of dollars to finance its debt, while increasing money supply immensely leading to inflationary concerns, when inflation goes up, gold skyrockets. Weakness in real GDP growth during the first quarter of 2016 was due to a decline in inventory and non-residential fixed investment, declining state and local government expenditures, and a continuing deterioration in our trade balance. The 2nd Annual Capital Region Business Forum is taking place in the nation’s capital, where the governors of Maryland and Virginia will gather to talk about economic issues. Some incidents may turn a technical Forex trader into a fundamental trader because the trader knows the economic factors that will cause volatility in the price of the currency, and wants to profit from a subsequent movement. This information revolution is what’s causing the layoffs in the newspaper industry.
Once you have access to a fast news data feed at Bloomberg then you can track the news and then determine the significance of the economic news report being released for the particular currency pair you are trading, if the news are not important, do not trade the pair.