Forex trading is all about making informed decisions based on the latest market trends and news. In the world of forex, there are certain announcements that have a significant impact on the market. These announcements are referred to as high impact announcements. Understanding what they are and how they impact the market can help you make more informed decisions when trading.
Here are the 24 high impact announcements in forex:
1. Interest rate decisions
Interest rate decisions by central banks are among the most important announcements in forex. When a central bank raises interest rates, it attracts more foreign investment, which can lead to an increase in the value of the currency. On the other hand, when interest rates are lowered, it can lead to a decrease in the value of the currency.
2. Gross Domestic Product (GDP)
Gross Domestic Product is a measure of the economic activity of a country. When GDP is high, it indicates a strong economy, which can lead to an increase in the value of the currency.
3. Consumer Price Index (CPI)
The Consumer Price Index is a measure of inflation in a country. When CPI is high, it indicates that inflation is rising, which can lead to a decrease in the value of the currency.
4. Non-Farm Payrolls (NFP)
The Non-Farm Payrolls report is released by the U.S. Bureau of Labor Statistics and provides data on employment in the non-farm sector. This report is closely watched by forex traders as it can impact the U.S. dollar and other currencies.
5. Retail Sales
Retail Sales is a measure of consumer spending and is closely watched by forex traders as it can impact the value of the currency.
6. Trade Balance
The Trade Balance report provides data on a country’s imports and exports. When a country exports more than it imports, it can lead to an increase in the value of the currency.
7. Industrial Production
Industrial Production is a measure of the output of the manufacturing, mining, and utility sectors. When industrial production is high, it indicates a strong economy, which can lead to an increase in the value of the currency.
8. Purchasing Managers Index (PMI)
The Purchasing Managers Index is a measure of the manufacturing sector’s health. When the PMI is high, it indicates a strong manufacturing sector, which can lead to an increase in the value of the currency.
9. Consumer Confidence
Consumer Confidence is a measure of how confident consumers are about the economy. When consumer confidence is high, it can lead to an increase in consumer spending, which can lead to an increase in the value of the currency.
10. Business Confidence
Business Confidence is a measure of how confident businesses are about the economy. When business confidence is high, it can lead to increased investment, which can lead to an increase in the value of the currency.
11. Central Bank Speeches
Speeches by central bank officials can provide insight into the central bank’s future monetary policy decisions. These speeches are closely watched by forex traders as they can impact the value of the currency.
12. Inflation Rate
The Inflation Rate is a measure of the rate at which prices are rising. When inflation is high, it can lead to a decrease in the value of the currency.
13. Producer Price Index (PPI)
The Producer Price Index is a measure of the average change in selling prices received by domestic producers for their output. When PPI is high, it can lead to an increase in the value of the currency.
14. Durable Goods Orders
Durable Goods Orders is a measure of new orders placed with domestic manufacturers for delivery of durable goods. When durable goods orders are high, it can lead to an increase in the value of the currency.
15. Existing Home Sales
Existing Home Sales is a measure of the number of previously constructed homes sold in a month. When existing home sales are high, it can lead to an increase in the value of the currency.
16. New Home Sales
New Home Sales is a measure of the number of new homes sold in a month. When new home sales are high, it can lead to an increase in the value of the currency.
17. Building Permits
Building Permits is a measure of the number of permits issued for new construction projects. When building permits are high, it can lead to an increase in the value of the currency.
18. Capacity Utilization
Capacity Utilization is a measure of the percentage of available resources that are being used in the production of goods and services. When capacity utilization is high, it can lead to an increase in the value of the currency.
19. Jobless Claims
Jobless Claims is a measure of the number of people who have filed for unemployment benefits. When jobless claims are high, it can lead to a decrease in the value of the currency.
20. Balance of Payments
The Balance of Payments is a measure of a country’s economic transactions with the rest of the world. When a country has a positive balance of payments, it can lead to an increase in the value of the currency.
21. Current Account
The Current Account is a measure of a country’s trade balance and includes all transactions other than financial ones. When a country has a positive current account, it can lead to an increase in the value of the currency.
22. Gross National Product (GNP)
Gross National Product is a measure of the economic activity of a country and includes economic activity by citizens and businesses of that country, regardless of their location. When GNP is high, it indicates a strong economy, which can lead to an increase in the value of the currency.
23. Money Supply
Money Supply is a measure of the amount of money in circulation in a country. When the money supply is high, it can lead to an increase in inflation and a decrease in the value of the currency.
24. Political Events
Political events can have a significant impact on the value of a currency. Elections, changes in government, and geopolitical tensions can all impact the value of a currency.
In conclusion, understanding the impact of these high impact announcements on the forex market can help you make informed decisions when trading. It is important to stay up to date with the latest news and trends in the forex market to make the most out of your investments.
