which economic news has the most impact on forex?

@kehinde - 9 months ago - Fundamental Analysis

So, guys what's your pick for the most impactful economic news that has the tendency to shake up the forex market? For me I think it is the CPI but I want to hear what you all think.

@sandy20 - 9 months ago

I think interest rate decision news has the greatest tendency to move exchange rates. I have seen exchange rates start moving based on pure anticipation even before the interest rate decision is made by the central bank.

Whenever a country's central bank cuts interest rates (healthy economies only), their currency weakens. For example, the United States is expected to cut interest rates by around 25bps tomorrow and we are already seeing the eurusd exchange rate skyrocket to 1.1800 (meaning the dollar is weakening against the euro) even before the announcement has been made.

@segun_33 - 9 months ago

It could depend on the forex pair you are trading. For EUR/USD I guess Nonfarm Payroll has the capacity to rock the boat when it is released

@weilo_daniel - 6 months ago

Interest rate announements by Central Banks affect the exchange rate of the related currency

@headies25284 - 5 months ago

Certain economic news releases can move the forex market a LOT, sometimes within seconds. Here are the ones that usually have the strongest impact:

1. Non-Farm Payrolls (NFP) – USA

Released monthly (first Friday)

Measures how many jobs were added/removed

Huge impact on USD pairs

Often causes fast volatility

2. Interest Rate Decisions (Central Banks)

From:

Federal Reserve (USD)

ECB (EUR)

Bank of England (GBP)

Bank of Japan (JPY)

Etc.

Rates affect currencies because they change how much yield investors get holding that currency.

@jay_malema - 5 months ago

If I have to pick one, I would go with Interest Rate announcements especially those by the European Central Bank (ECB) and the US Federal Reserve