FOREX FACTORY: THE COMPLETE GUIDE

Forex Factory is one of the most important resources that you will use as a trader, it encompasses several aspects important to trading including:

The Forex Factory
Economic Calendar

News Releases

Current Market Prices

The Forex Factory
Forum

Trades Opened by
Other Users

The Forex Factory
Trade Explorer

Brokers

On this page you will find a comprehensive and in-depth guide into how you can use each one of these
aspects to improve and enhance your own trading and experience.

The Forex Factory Home Page

The Forex Factory Home Page is completely customisable to suit your individual needs or trading style. On every core page of Forex Factory, which we will go more in-depth into below, you will see the following symbols when hovering over the top of a block:

Forex Factory Home Menu

The arrow buttons allow you to move a block relative to its neighbouring blocks within that page. However, the small house with a ‘+’ inside it (Home Icon) allows you to add that particular block to your own personal homepage on Forex Factory.

The Home Page may reset after a while, so if you are going to customise your personal homepage, we recommend creating a user and being logged in when making those customisations.

The Forex Factory Economic Calendar

The Forex Factory Economic Calendar can be found at the top of the Forex Factory website:

Setting up

When you first open the Forex Factory Calendar, you will be greeted with the current week’s events, but you may notice that the times do not quite line up…

In this section we will go through configuring the Forex Factory Calendar to suit your individual requirements and needs.

Setting your Date/Time

The first thing you are going to want to do is set your correct time zone.

At the top right of your screen, you will see what Forex Factory thinks the current time for you is:

Click the time, and you will be taken to another page to adjust your time-zone:

Forex Factory will automatically guess your time-zone based on your computer’s clock, if it guesses correctly, you can simply click ‘Save Settings’ and go back to the Calendar.

If it guesses incorrectly or is unable to determine your time-zone based on your computer’s clock, simply click the Time Zone drop-down menu, and select it manually.

You also have the option to display the time in the 12-hour am/pm format, or instead display as a 24-hour clock ranging from 00:00 – 23:59. Whichever you choose is down to personal preference.

Once you are happy with your Time Zone and Time Format, simply click ‘Save Settings’, and navigate back to the Calendar using the navigation bar at the top of the page.

Custom Date Ranges

By default, Forex Factory will show you the Calendar for the current week spanning Sunday to Saturday.

You can change this in two ways.

Firstly, you can use the Navigation section to the left of your screen:

Forex Factory Navigation

You can select a date-range by clicking on the relevant dates on the mini-calendar, or you can select a pre-defined range such as ‘This Week’, ‘This Month’, ‘Next Week’, ‘Next Month’, etc.

Secondly, you can click the date-range displayed at the top of your Calendar:

Forex Factory Date Range

This will open a menu in which you can select your ‘Begin Date’ and ‘End Date’.

Forex Factory Calendar

You can manually type in the dates you wish to use within the boxes at the top of this menu or use the navigation options provided.

The Single Arrows (<>) will skip 1-month forwards or backwards on the Calendar.

The Double Arrows (<<>>) will skip 1-year forwards or backwards on the Calendar.

Simply click the dates you wish to use and click ‘Apply Settings’. Your Calendar will then be updated with the events that will occur or have occurred within those two dates.

If you click ‘none’ next to End Date, it will simply default to a single-page view of the Begin Date you have selected.

In this menu, you may also change your ‘Default View’, which will change what you see on the Calendar by default when you open the page. The options are: Today, Tomorrow, Yesterday, and This Week.

Please Note: Forex Factory only supports a maximum date-range of 60 days.

Using Filters

By default, you will be shown all the events that are scheduled, the way you can refine this is through the use of Filters.

At the top right of the Calendar, you will find a button labelled ‘Filter’:

Forex Factory Filter

Click this button to open the Filter Menu:
Forex Factory Filter Menu

As you can see, all options are enabled by default. Simply un-tick the ones that are not relevant to you.

/

Expected Impact:

  • Red: High Impact Expected
  • Orange: Medium-Impact Expected
  • Yellow: Low Impact Expected
  • Grey: Non-Economic

Event Types

The various types of events have varying levels of impact within themselves, below you will find an in-depth explanation to the events that historically have had a high impact on the financial markets.

Currencies:

The Columns on your Calendar

Date

This column simply shows the date on which the listed events will take place.
}

Time

This column displays the current time and at what time events are expected to take place. It also includes an arrow pointing to the next scheduled event. Events that have passed will have their time shown in grey.

Currency

This column shows which currency is likely to be affected by the event listed.

Impact

This column represents the impact that the listed event may have on the markets:
W

Red

High Impact Expected
W

Yellow

Low Impact Expected
W

Orange

Medium-Impact Expected
W

Grey

Non-Economic

Event

This column shows the name of the event which is to take place, such as ‘Retail Sales’ or ‘GDP’

Detail

In this column you will find a clickable ‘folder’ icon which will expand the event and give you more information:
E

Source

This shows the source that will release the report. For example, the USD Non-Farm Employment Change is released by the Bureau of Labor Statistics.
E

Usual Effect

This shows what effect the news release will typically have on the markets depending on the ‘Actual’ figure.
E

Next Release

This shows when the next scheduled release of this event will be, after the one you are currently viewing.
E

Why Traders Care

This outlines why the event would have an impact on the markets or why it is important for you as a trader to be aware of it and track its changes.
E

Acro Expand

This simply expands any acronyms that are used so that you have total clarity for the event. For example, PMI expands to Purchasing Managers’ Index.
E

Measures

This shows what the report is measuring. For example, GDP measures the overall change in the value of goods and services produced by an economy.
E

Frequency

This shows how often a report might be released, whether it be Weekly, Monthly, Quarterly, or on any other pre-defined schedule.
E

FF Notes

This often gives a brief explanation of the event and how it might be conducted, as well as other pieces of relevant information that you may find useful.
E

Derived Via

This outlines how the data is collected and analysed to produce a final figure.
E

Also Called

This lets you know if there are any other names for this event outside of Forex Factory.
R

Actual:

This column shows the result of the report and will only be filled once the report has been released.

Forecast:

This column shows the expected value of the release and will only be filled once the trading week that the event takes place in has commenced.

Previous:

This column shows the value of the previous release of the relative report.

Graph:

In this column, you will find a clickable ‘graph’ icon which will expand a graph below the event showing the event’s history. You can toggle whether to show or hide the Actual Figure, Forecast Figure, or any Revisions. You may also change the date range using either the Range Menu, or using the slider at the bottom of the graph.

​Forex Factory News Events: High Impact/Red Flag Events

Understanding the high impact Forex Factory news events is critical to your success as a forex trader. It’s this understanding that separates the average traders from the exceptional traders. Below we’ll go through the various high-impact events, outlining what they’re called, what any acronyms stand for, any other names for the events, the typical release date (if applicable), and what they mean for the markets.

High Impact Forex Factory Events

Back to Currency List

High Impact Forex Factory News Events that Affect All Currencies

Your Title Goes Here
G7 Meetings
Acronyms:
– G7: Group of Seven
Release Date: Undefined

The G7 Prime Ministers and Presidents meet annually to address global challenges such as economic issues, health crises, and the climate crisis. Previous G7 summits have addressed issues ranging from debt relief for developing countries to health crises such as HIV and AIDS, as well as global security threats.

How this might affect the currency markets, and impact your trades

The G7 summit is significant since the heads of government attending are the leaders of some of the world’s wealthiest and most influential nations. Decisions made at these meetings have an effect on people all over the world, and therefore have an effect on currencies all over the world as well.

G20 Meetings
Acronyms:
– G20: Group of Twenty
– LIDCs: Low-Income and Developing Countries
Release Date: Undefined

The G20 is a group of finance ministers and central bank governors from 19 of the world’s largest economies, including several developed countries, as well as the European Union. The G20 was established in 1999 with the mission of promoting global economic development, international trade, and financial market regulation.

How this might affect the currency markets, and impact your trades

The G20 plays a critical role in fostering a climate conducive to sustainable economic growth and development. Its work on ensuring financial stability, fostering development, and preventing and managing crises is critical in assisting LIDCs in seizing opportunities and overcoming challenges. This meeting will give a good indication to traders about the global economy and its future growth

Jackson Hole Symposium
Also known as: Kansas City Fed Economic Symposium
Release Date: Annually

Since 1978, the Federal Reserve Bank of Kansas City has sponsored the Jackson Hole Economic Symposium, which has been held in Jackson Hole, Wyoming, since 1981. Every year, the symposium focuses on a critical economic problem confronting the world’s economies. Participants include influential central bankers and finance ministers from around the world, as well as academic luminaries and leading financial market players.

Market participants closely observe the symposium proceedings because unexpected comments from the symposium’s heavyweights have the potential to impact global stock and currency markets.

How this might affect the currency markets, and impact your trades

The symposium is closely followed by financial market participants all over the world, and it has gotten more publicity in the last decade, owing to what has happened in the past. Some of the most important monetary policies were first unveiled at the gathering, but they were not officially announced. Any unexpected comment from any individual during the event has the potential to impact global financial markets.

OPEC-JMMC Meetings
Acronyms:
– OPEC: The Organization of Petroleum Exporting Countries
– JMMC: Joint Ministerial Monitoring Committee
Release Date: Monthly, otherwise undefined

These meetings can have a major impact on the price of Oil and all co-related currencies such as USD/CAD and the Norwegian Krone (NOK).

Representatives from 11 oil-rich nations and 13 OPEC members attend this meeting to discuss different issues related to oil production and any major issues concerning the energy markets. These are closed-door meetings, and a statement is generally released toward the end of the meeting to the press.

How this might affect the currency markets, and impact your trades

This meeting could have a substantial impact on Crude Oil and its correlating currency pairs such as the USD/CAD. Be sure to stay aware of any OPEC-JMMC Meetings if you are trading Crude Oil or the USD/CAD

OPEC Meetings
Acronyms:
– OPEC: The Organisation of Petroleum Exporting Countries
Release Date: Twice per year

OPEC Meetings are typically held in Vienna and representatives from 15 of the world’s most oil-rich nations are usually in attendance. At the meeting a range of topics are discussed surrounding the energy markets, and an agreement is also made surrounding how much oil the nations will produce.

While the meeting is closed to the press, it’s not unusual for attendees to have talks with the press and reporters throughout the day. Once the meeting is concluded, a formal statement which covers any policy shifts or objectives from the meeting is released.

How this might affect the currency markets, and impact your trades

40% of the world’s oil supply is made up from nations of the OPEC. These nations are unified in their production levels of oil and due to their size, have a lot of control over the supply of oil around the globe. This means that any shifts in their production levels can have a major knock-on effect to oil prices and related currency pairs.

High Impact Forex Factory News Events that Affect The United States Dollar (USD)

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ADP Non-Farm Employment Change

Acronyms:
- ADP: Automatic Data Processing, Inc.
Release Date: Monthly, first Wednesday after month-end

The ADP Non-Farm Employment Change report comes just 2 days before the government-released Non-Farm Employment Change report and can provide a good indication of what the NFP release is going to look like.

The ADP looks at the payroll data of over 23 million workers within the United States to determine potential growth in employment.

How this might affect the currency markets, and impact your trades

Employment is a basic indicator of how well a country’s economy is performing. The more people working in the country, the more productive that country is overall, and therefore the more money is circulating within that economy.

If the final figure is greater than the figure that was forecast, this will likely initiate a bullish move within the markets for currency pairs that have the USD as the base currency, such as the USD/CHF, USD/JPY, USD/CAD; and a bearish move for currency pairs with the USD as the quote currency, such as the EUR/USD or GBP/USD.

Advance GDP q/q

Acronyms:
- GDP: Gross Domestic Product
Also known as: GDP First Release; Estimated GDP
Release Date: Quarterly, about 30 days after quarter-end

This report indicates the economic stability of the economy via detailed measurable economic activity. This report can determine the risk factor that traders take on the financial markets.

How this might affect the currency markets, and impact your trades

The financial markets work on either risk on or risk off. GDP reports are a crucial element in determining the future direction of the currency's trend. The favourable outcome is if the 'actual' figure is greater than 'forecast' figure, it shows that the economy is not only stable but is growing as well.

Average Hourly Earnings m/m

Release Date: Monthly, on the first Friday of the new month

This report is the earliest indication of either a rise or fall in the rate of labour inflation.

If the prices of labour are higher, then these costs are typically passed onto the consumer, through the increased cost of products and/or services.

How this might affect the currency markets, and impact your trades

This is not really a market-mover as such, but depending on the overall change, it can move the markets more than might be expected.

Building Permits

Also known as: Residential Building Permits
Release Date: Monthly, 17 days after month-end

Securing a permit is one of the first measures toward creating a new structure, it's an outstanding indicator of potential construction operation.

How this might affect the currency markets, and impact your trades

The Building Permits reports are important market events for news trading strategies in the financial markets. As a leading indicator of the economy’s progress towards monetary policy goals, it informs both the Fed’s sentiment and the market’s sentiment towards the stocks of construction-related companies. In turn, this can create trend-setting volatility in the hours after the release and generate multiple opportunities with high risk/return ratios within the forex market.

CB Consumer Confidence

Acronyms:
- CB: The Conference Board
Release Date: Monthly, on the last Tuesday of the month

Each month, the Conference Board conducts 5,000 surveys with questions centred around aspects such as business conditions, employment conditions, and family incomes. This consumer sentiment survey allows the analysts to understand the expectations of consumers based on their economic circumstances.

The level of consumer trust in economic activity is determined by consumer confidence. It's a leading indicator for the sole reason that it can estimate consumer spending, which is key to overall economic activity. Higher readings suggest that customers are more positive.

How this might affect the currency markets, and impact your trades

This Event not only has a direct effect on currencies and stock markets, but it could also have an impact on certain decisions made by the Federal Reserve of the United States.

For example, if consumer morale is declining, this would indicate that economic growth is slowing. Therefore, if the actual figure that’s released is greater than the figure that was forecast, you can expect it to have a positive impact on the US Dollar.

Congressional Elections

Also known as: House of Representatives Elections, Senate Elections
Release Date: Every 2 years

Congressional Elections happen at two points during a President’s term. At the very beginning, concurrent with their own election, and mid-way through the President’s term.

Below we will focus specifically on the mid-term elections as the concurrent elections are typically over-shadowed by the Presidential Election itself.

The mid-term elections are often regarded as an opportunity to demonstrate satisfaction or dissatisfaction with the president's results. In fact, it is not unusual for the minority political party (the party that does not rule the White House) to win congressional seats during the mid-term elections.

The mid-term elections are based on the two houses of Congress: The United States Senate and the House of Representatives. Members of the House are chosen for two-year terms, so the midterm elections determine all 435 seats.

How this might affect the currency markets, and impact your trades

The Congress is the entity where laws are enacted, the executive is overseen, and most significantly, money is both collected and spent. According to the founders, Congress, like the legislative and judicial branches, is an equal branch of government. As a result, electing members of Congress allows American citizens to influence their government.

Depending on the results of the elections, the ideas that the corresponding parties have around fiscal policy will have an impact on the overall strength of the US Dollar, and will therefore create volatility in the markets for traders to take advantage of.

Core CPI m/m

Acronyms:
- CPI: Consumer Price Index
- FOMC: Federal Open Market Committee
Also known as: CPI Ex Food and Energy; Underlying CPI
Release Date: Monthly, 16 days after month-end

Core CPI is similar to the typical CPI except for one important detail.

Core CPI doesn’t include either Food or Energy prices within the report. These two factors would typically account for around 25% of the CPI report. The reason these are not included in the Core CPI report is because they’re naturally volatile goods and services. Removing these two factors gives a more accurate view of how the Consumer Price Index is fluctuating and what the currencies level of inflation would be. The FOMC pays much more attention to the Core CPI report than it does the typical CPI report for this very reason.

How this might affect the currency markets, and impact your trades

Having this better view of inflation gives traders an insight into how interest rates may be altered in order to bring inflation under control as per the Fed’s inflation containment mandate.

Interest rate changes can have a substantial impact on a currency and so keeping informed on the Core CPI each month will ensure you’re in a good position as a trader to take advantage of potential interest rate announcements.

Core Durable Goods Orders m/m

Also known as: Durable Goods Orders Ex Transportation
Release Date: Monthly, about 26 days after month-end

The improvement in the overall value of new orders for long-lasting manufactured products (except transportation items) is determined by Core Durable Goods Orders. Since aircraft orders are highly unpredictable and take several months to fill, the core number provides a more accurate picture of ordering patterns.

How this might affect the currency markets, and impact your trades

The term "Core Durable Goods Orders" applies to new orders for such goods in the United States, which are the total durable goods orders with the exception of transportation equipment.

Traders closely track the new orders figures because they can provide a great insight into current economic conditions, as well as future manufacturing production commitments.

Core Retail Sales m/m

Also known as: Retail Sales Ex Autos
Release Date: Monthly, 16 days after month-end

The core retail sales figure is based on Census Bureau data but excludes consumer spending on cars, gasoline, construction materials, and food services. The reason for this is simply because prices for these items are much more volatile and can quite easily distort the overall figure. This statistic reflects the monthly percentage increase or decrease in Core Retail Sales.

How this might affect the currency markets, and impact your trades

The percentage increase or decrease from month to month indicates whether the economy is either shrinking or expanding, as well as how quickly. Retail sales that are extremely high or extremely weak may place upward or downward pressure on retail prices. If retail sales continue to increase, upward pressure on prices will eventually take hold, especially if the figures continue to rise month after month.

Therefore, if the figure reported is higher than the figure predicted, this can be positive for currency and bring opportunities for traders to take advantage of.

CPI m/m

Acronyms:
- CPI: Consumer Price Index
Release Date: Monthly, 16 days after month-end

The Consumer Price Index report measures what changes there have been in the prices of both goods and services that have been purchased by consumers. This report helps to determine the rate of inflation as consumer prices play a significant role in the increase or decrease in inflation. However, there is always going to be some level of volatility within the CPI figure as both food and energy are naturally fluctuating goods/services that may potentially skew the figures.

How this might affect the currency markets, and impact your trades

While CPI may not be as accurate as Core CPI (CPI excluding Food and Energy Prices) in determining the potential rise or fall of inflation, it’s still an important report to be aware of as a financial trader. Be sure to keep informed on both the CPI and Core CPI to give yourself the best chance of predicting where the market might move.

Crude Oil Inventories

Acronyms:
- EIA: Energy Information Administration
Also known as: Crude Stocks; Crude Levels
Release Date: Weekly, 4 days after week-end

The Crude Oil Inventories figure shows how many barrels of crude oil commercial firms have on hand. The Energy Information Administration receives weekly reports from commercial companies on inventory levels, but the EIA must also make certain calculations to arrive at the final figure.

How this might affect the currency markets, and impact your trades

Crude Oil is a major commodity within the United States. However, this event can have a significant impact on the Canadian Dollar as the Canadian Energy Sector is monumental, and shares a somewhat symbiotic relationship with the prices of Crude Oil.

If the Crude Oil Inventories figure rises, it is a poor indicator for oil producers as they’re holding more stock, which typically leads to a decrease in the price in order to move that stock. If the inventory figures fall, this is a good indicator as it signifies that demand is high, and therefore prices for oil will be able to increase in order to maintain sufficient supply.

Existing Home Sales

Also known as: Home Resales
Release Date: Monthly, 20 days after month-end

The transaction data for the sales of existing homes in the United States tracks and records both sales and prices of existing single-family homes, condos, and co-ops by region: West; Midwest; South; and Northeast.

How this might affect the currency markets, and impact your trades

Existing Home Sales are vital for predicting the health of the housing sector and it therefore has a direct effect on the markets. When the data comes out and it is stronger than expected, this is good for the economy, and would encourage traders to buy into the market.

Fed Announcement

Acronyms:
- Fed: Federal Reserve
- FOMC: Federal Open Market Committee

Also known as: Fed Statement
Release Date: Undefined

The Fed Announcement is a mechanism used by the FOMC to convey monetary policy to investors. It includes policy decisions as well as comments on economic factors that affect their decisions.

How this might affect the currency markets, and impact your trades

This event is undefined and typically includes sporadic decisions and/or policy changes. FOMC statements are typically scheduled, however those decisions or statements that are unscheduled are typically included within the Fed Announcement. It’s important to keep informed on these Announcements as they can have a substantial impact on the markets, depending on the subject matter that’s covered.

Fed Chair ____ Speaks

Acronyms:
- Fed: Federal Reserve
Release Date: Undefined

When the Fed Chair speaks, it is important for traders and investors to pay close attention to what is being said as there can occasionally be clues to what the future interest rate policy might be, and deciphering those clues will give traders and investors an edge when those interest rate decisions are announced.

How this might affect the currency markets, and impact your trades

The Fed Chair is the head of the central bank and the central bank controls short-term interest rates; therefore, the Fed Chair has a greater influence over the value of the nation’s currency than anyone else, including the President.

Being aware of the Fed Chair’s public engagements is paramount if you’re wanting to trade the US Dollar. Oftentimes there will be clues and hints which will point to future changes or implementations of economic policies which will in-turn affect the US Dollar’s value. Scrutinising these public engagements is one of the factors that separates the casual traders from the professional.

Fed Chair ____ Testifies

Acronyms:
- Fed: Federal Reserve
Release Date: Undefined

The Fed Chair testifies to a number of government committees and sectors all throughout the year. Oftentimes the Fed Chair will testify alongside the Treasury Secretary and so depending on the subject matter at hand, it can have a significant impact on the markets.

How this might affect the currency markets, and impact your trades

Typically, these engagements are split into two segments. A prepared statement, followed by a Question and Answer session. As both the questions and answers are un-scripted, there can be some unexpected developments which have the potential to heavily impact the markets.

Keeping on top of these events and paying close attention to the Q&A session could provide some beautiful trading opportunities in the market.

Fed Chairman Nomination Vote

Release Date: Every 4 years

The chair is chosen by the President of the United States from among the members of the Board of Governors and serves a four-year term following confirmation by the United States Senate.

A chair can serve multiple consecutive terms, each of which requires a new nomination and confirmation. The longest-serving chair was William Martin. He served from 1951 to 1970. The second longest-serving chair was Alan Greenspan. The chair may not serve at the pleasure of the President; therefore, the Fed Chair cannot be fired by the President of the United States. The chair can however resign before the term expires.

How this might affect the currency markets, and impact your trades

The Chairman of the Federal Reserve is the single most influential figure when it comes to economic policy and therefore the overall value of the US Dollar. Due to this influence, significant volatility is to be expected when the vote happens as it marks the direction that will be taken going forwards regarding economic policy.

This volatility is a great opportunity to trade the markets, so long as you’re well-informed on the economic ideals of each potential Fed Chair preceding the vote.

Federal Funds Rate

Acronyms:
- FOMC: Federal Open Market Committee
Also known as: Interest Rates; Fed Funds Rate
Release Date: Scheduled 8 times per year

The Federal Funds Rate is the interest rate charged by banks to each other for lending Federal Reserve funds overnight. These funds are lent by banks from one another in order to meet and retain strict reserve requirements.

The Federal Reserve also uses it as a mechanism to control the country's money supply in order to achieve a stable economy, as well as a benchmark for interest rates on savings, loans, credit cards, and other items.

How this might affect the currency markets, and impact your trades

This event is high impact, which means when the data gets released a lot of volatility will likely come into the market.

If inflation becomes too high, the Fed will consider raising the Fed Funds Rate. This decreases the amount of money available for lending by banks, slowing both consumer borrowing and demand. It can also make consumer debt costlier, causing consumers to spend less, which in turn lowers demand and prices for goods and services.

If inflation falls, it indicates, among other things, that consumers are not spending. This is not good for the central bank because it could lead to a recession. In this case, the Fed is more likely to lower interest rates in order to increase economic activity. A lower interest rate means less expensive borrowing for both customers and companies, which can help contribute to economic growth.

Final GDP q/q

Acronyms:
- GDP: Gross Domestic Product
Release Date: Quarterly, 85 days after quarter-end

In simple terms, Gross Domestic Product (GDP) is the total value of an economy. It is the sum of all the goods and services rendered within a particular country. Consumption, Investment, Net Exports, and Government Expenditures, these are the four categories that The United States’ GDP can be broken down into.

How this might affect the currency markets, and impact your trades

Economic data reports are critical for a forex trader. These significant economic indicators trigger uncertainty and a lot of speculation. GDP is especially important as it shows the total effect that policies, companies, and consumers have had on the bottom line of a country’s wealth and progress.

Forex traders track this vital piece of economic data, to help pinpoint new trading opportunities, or simply to understand how strong an economy might be at any given point in time. The stronger the currency, the more bullish the overall trend is expected to be.

Flash Manufacturing PMI

Acronyms:
- PMI: Purchasing Managers' Index
Release Date:Monthly, 3 weeks into the month

Due to the way in which the Flash Manufacturing PMI is conducted, it is inherently a strong predictor of the final PMI figure. The Flash Manufacturing PMI reading is an estimation of a country's Manufacturing Purchasing Managers' Index (PMI) based on approximately 85 percent to 90 percent of total PMI survey responses per month. The goal is to provide an accurate foreshadowing of the final PMI data.

How this might affect the currency markets, and impact your trades

In general, higher-than-expected releases and previous data indicate that producers are more positive and optimistic about future business. As a result, demand for the US Dollar increases. Readings that begin to fall below forecast and previous data, on the other hand, may indicate that there is less trust and growth in the economy. As a result, demand for the US Dollar falls.

FOMC Economic Projections

Acronyms:
- FOMC: Federal Open Market Committee
Release Date: Scheduled 4 times per year

The FOMC's stated aim is to pursue monetary policy that "effectively promotes the goals of full jobs, stable prices, and moderate long-term interest rates." Their meetings are held to make monetary policy decisions, review economic and financial conditions, and determine market stability and job performance. It is the Fed's governing body that decides national monetary policy. The FOMC's effect can be seen in the case of adjusting the Fed Funds Rate, which affects interest rates. If the Federal Funds Rate is boosted, the cost of home mortgages, loans, and credit cards will rise. When the Federal Funds Rate is reduced, the reverse occurs.

How this might affect the currency markets, and impact your trades

The FOMC, or Federal Open Market Committee, is the Fed's monetary policymaking body. It is in charge of designing a strategy to support market stability and economic development. Simply put, the FOMC is in charge of the nation's money supply. All Federal Reserve Bank Presidents attend FOMC policy meetings.

FOMC Meeting Minutes

Acronyms:
- FOMC: Federal Open Market Committee
Release Date:Scheduled 8 times per year, 3 weeks after the Federal Funds Rate is announced

The committee is part of the Federal Reserve System of the United States, which is the legislative body in charge of monetary policy in the United States. In general, this is accomplished by establishing objectives in the free market and managing securities for the US Treasury. The Federal Reserve Bank of New York performs the bulk of free market operations.

How this might affect the currency markets, and impact your trades

The FOMC is of particular interest to currency traders because it collaborates closely with the Treasury on currency matters. The Treasury normally sets policies for the dollar's value, but the FOMC guides monetary practices.

FOMC Member ____ Speaks

Acronyms:
- FOMC: Federal Open Market Committee
Release Date: Undefined

The FOMC (Federal Open Market Committee) is the division of the US Federal Reserve that decides monetary policy. FOMC announcements are one of the most awaited events on the economic calendar because they remind everyone about the US Federal Reserve's interest rate decision. The FOMC can decide to raise, lower, or maintain interest rates at current levels, which will have a significant impact on currency values. The Board of Governors of the FOMC is made up of seven members and five reserve bank presidents.

Any time a member of the FOMC speaks, it can be a precursor to a policy change, or have subtle clues about the future of monetary policy. It’s important to keep up to date with every time a member of the FOMC speaks publicly as this could have an impact on the markets.

How this might affect the currency markets, and impact your trades

Central banks may surprise the market with a rate hike or cut. When this occurs, a trader should be able to predict which way the market will shift. If interest rates rise, the currency would appreciate, causing traders to buy. If interest rates are cut, traders would most likely sell and buy currencies with higher interest rates.

Keeping on top of public speeches by members of the FOMC may help to give you an edge as to what might be expected if such a decision is made.

FOMC Press Conference

Acronyms:
- FOMC: Federal Open Market Committee
- Fed: Federal Reserve
Also known as: Chair's Press Briefing
Release Date: Scheduled 8 times per year

The FOMC Press Conference is typically an hour long, and consists of two parts. The first part is the reading of a prepared statement by the Fed Chair, and the second part is a question and answer session with the press.

As the questions and answers are unscripted, they can often create volatility in the market, depending on the subject matter that is being discussed.

How this might affect the currency markets, and impact your trades

The FOMC Press Conference is one of the main ways that the Federal Reserve communicates monetary policy to investors. It covers a whole heap of important information, such as the reasons behind the latest monetary policy decisions, as well as what the future looks like with regards to growth and inflation.

All of these aspects are major players when it comes to assessing the USD from a fundamental perspective, and careful attention should be paid to events such as the FOMC Press Conference.

FOMC Statement

Acronyms:
- FOMC: Federal Open Market Committee
Also known as: Interest Rate Statement; Fed Statement; Monetary Policy Statement
Release Date: Scheduled 8 times per year

The FOMC Statement is the most prevalent way that the FOMC uses to communicate monetary policy to investors and the population as a whole. Typically, the statement is changed slightly with each release.

How this might affect the currency markets, and impact your trades

The FOMC Statement includes the results of the FOMC vote on interest rates as well as a number of other monetary policy measures. It also explains in detail the reasons behind those decisions and the economic factors that pushed each member to their conclusion.

What you really want to look out for however is the economic outlook and what the outcome of future FOMC votes may be, so that you can get an edge on the next Statement release.

ISM Manufacturing PMI

Acronyms:
- ISM: Institute for Supply Management
- PMI: Purchasing Managers’ Index
Also known as: Manufacturing ISM Report on Business
Release Date: Monthly, on the first business day of the new month

The ISM Manufacturing PMI surveys around 300 Purchasing Managers in the Manufacturing sector to determine the level of a diffusion index. It’s a good indicator of economic health as businesses will typically react very quickly to changing market conditions. Purchasing Managers are the first on the scene, so to speak. Put simply, if a company is buying, they believe the economy is doing well, and the buying is carried out by the Purchasing Managers.

How this might affect the currency markets, and impact your trades

Typically, the 50.0 mark is your baseline, or break-even point when investigating if industry is expanding (>50.0) or contracting (<50.0). However, you will want to look closely at the Forecast as this will often determine which way the currency will move. Combining these two factors (the 50.0 baseline and the Forecast figure) will give you the best chance to trade this event once the actual figure has been released.

This event is sibling to the ISM Services PMI for which you would follow a similar approach

ISM Services PMI

Acronyms:
- ISM: The Institute for Supply Management
- PMI: Purchasing Managers' Index

Also known as: Non-Manufacturing PMI; Non-Manufacturing ISM Report on Business
Release Date: Monthly, on the third business day of the new month

The ISM Services PMI surveys around 300 Purchasing Managers in the Services sector to determine the level of a diffusion index. It’s a good indicator of economic health as businesses will typically react very quickly to changing market conditions. Purchasing Managers are the first on the scene, so to speak. Put simply, if a company is buying, they believe the economy is doing well, and the buying is carried out by the Purchasing Managers.

How this might affect the currency markets, and impact your trades

Typically, the 50.0 mark is your baseline, or break-even point when investigating if industry is expanding (>50.0) or contracting (<50.0). However, you will want to look closely at the Forecast as this will often determine which way the currency will move. Combining these two factors (the 50.0 baseline and the Forecast figure) will give you the best chance to trade this event once the actual figure has been released.

This event is sibling to the ISM Manufacturing PMI for which you would follow a similar approach

JOLTS Job Openings

Acronyms:
- JOLTS: Job Openings and Labor Turnover Survey
Release Date: Monthly, 40 days after month-end

The Bureau of Labor Statistics conducts the Job Openings and Labor Turnover Survey (or JOLTS) on a monthly basis. This survey examines employment records, work vacancies, the number of employees employed, the number of employees who resigned, layoffs and discharges, and other separations from 16,000 US companies. The report includes both the private and public non-farm industries.

How this might affect the currency markets, and impact your trades

Despite its volatility, the JOLTS study provides us with a good picture of Labour-force demand and economic health. When businesses intend to increase output, the demand for workers rises. If this increase in demand creates a demand-supply imbalance, wage increases may be necessary to recruit new workers. Rising wages may result in increased spending and a higher rate of inflation.

New Home Sales

Also known as: New Residential Sales
Release Date: Monthly, 25 days after month-end

The data for New Home Sales is collected by interviews with home-builders and analysis of data from the U.S. Census Bureau's Survey of Construction. It specifically employs information from Building Permits issued for new construction projects. If a deposit was paid for the purchase of a new home, or if a contract to purchase the home was signed during or after the year of its completion, the home is included in the calculation.

How this might affect the currency markets, and impact your trades

Investors closely track New Home Sales because it is seen as a lagging predictor of real estate market demand and, therefore, a factor influencing mortgage rates. Factors such as household income, unemployment, and interest rates all play a role.

Non-Farm Employment Change

Release Date: Monthly, on the first Friday of the new month
Also known as: Non-Farm Payrolls; NFP; Employment Change

Non-Farm Employment Change is one of the most important USD-related news and has a great impact on the Forex market. Its effect on the Forex market helps to generate clear buy/sell signals, which expert Forex traders can pick up on and trade. There are two things Forex traders want: Volatility, and indications to trade. The Non-Farm Employment Change Report provides both of these almost every single month.

How this might affect the currency markets, and impact your trades

A rise in Non-Farm Employment will typically translate into a rise in the value of the US Dollar. Therefore, currency pairs that have the USD as the base currency, such as the USD/CHF, USD/JPY, USD/CAD, are going to go up; and currency pairs with the USD as the quote currency, such as the EUR/USD or GBP/USD, are going to go down.

A Non-Farm Employment change press release that is substantially higher than previous month will generate long-term trade or buy signals in the Forex market for USD-related pairings.

Pending Home Sales m/m

Also known as: Pending Resales
Release Date: Monthly, 28 days after month-end

The National Association of Realtors' Pending Home Sales report is a leading indicator of housing market patterns in the United States. It tracks the change in the homes currently contracted to be sold, but are awaiting the closing transaction. This does not include new constructions.

Since the housing market is a sensitive factor in the US economy, it causes some uncertainty in the USD.

How this might affect the currency markets, and impact your trades

There are a number of economic health factors that stem from a home being sold, such as mortgages, renovations, real-estate fees, and so on.

It’s a strong leading indicator as it gives traders an idea of what is to be expected for the economy once these homes are considered ‘sold’ and gives a good idea of the economic pipeline within the housing industry.

Philly Fed Manufacturing Index

Also known as: Philadelphia Fed Business Outlook Survey
Release Date: Monthly, on the third Thursday of the month

The survey is a gauge of regional manufacturing expansion. When the index is above zero, it indicates factory-sector expansion; when it is below zero, it indicates factory-sector contraction. The survey's aim is to provide a snapshot of current manufacturing activity in this region as well as a short-term forecast of manufacturing conditions in the area, which may provide an indicator of conditions across the United States.

How this might affect the currency markets, and impact your trades

Despite the fact that the Survey only polls manufacturers in a small portion of the United States, it can be a useful predictor of economic and business activity around the nation. Since manufacturing is so important to overall economic growth, the health of the sector is an indicator of the health of the overall economy, and the Philadelphia Fed Survey could provide early warning signs of problems in the regional sector, and therefore the overall U.S. economy.

PPI m/m

Acronyms:
- PPI: Producer Price Index
Also known as: Finished Goods PPI; Wholesale Prices; PPI for Final Demand
Release Date: Monthly, 13 days after month-end

Manufacturers' inflation rate is calculated by the Producer Price Index (PPI). The reading reflects the monthly shift in the average price of a predetermined basket of products purchased by producers. Higher interest rates usually contribute to higher inflation, which helps to boost the country's currency.

How this might affect the currency markets, and impact your trades

PPI depicts the inflation picture from a different angle than CPI. While changes in consumer prices are significant to customers, monitoring PPI helps one to determine the cause of CPI changes. If, for example, CPI rises much faster than PPI, this could mean that factors other than inflation are forcing retailers to raise their prices. However, if both the CPI and the PPI rise at the same time, retailers can simply be attempting to preserve their operating margins.

Prelim GDP q/q

Acronyms:
- GDP: Gross Domestic Product
Also known as: GDP Second Release
Release Date: Quarterly, 60 days after quarter-end

In simple terms, Gross Domestic Product (GDP) is the total value of an economy. It is the sum of all the goods and services rendered within a particular country. Consumption, Investment, Net Exports, and Government Expenditures, these are the four categories that The United States’ GDP can be broken down into.

How this might affect the currency markets, and impact your trades

The gross domestic product report, like every other piece of significant economic data, carries a lot of weight for currency traders. It shows development in a productive economy while signalling contraction in a declining one. As a result, currency traders will appear to pursue higher GDP or growth rates in the hope that interest rates will follow suit. When an economy expands at a reasonable pace, the benefits flow down to the customer, raising the probability of investment and expansion. In exchange, higher spending leads to higher costs, which central banks aim to regulate by raising interest rates.

Prelim UoM Consumer Sentiment

Acronyms:
- UoM: University of Michigan
Release Date: Monthly, around the middle of the month

Every month, the University of Michigan surveys approximately 600 households on their views and attitudes toward their own personal economic circumstances, the overall economy, and the idea of making major household purchases at this time.

How this might affect the currency markets, and impact your trades

Consumer spending has an effect on supply and demand. More investment can boost the economy, while less spending can stifle it. Spending can have an effect on corporate income, corporate investments, jobs, and other factors, all of which can have an impact on the larger market and economy. It is a feedback loop, and whether it is positive or negative is determined by emotion.

The consumer sentiment index, as a leading indicator, may provide some insight into how people will spend in the near future based on their optimism or pessimism about the economy.

President ____ Speaks

Release Date: Undefined

There are a number of scheduled events that the President of the United States will typically speak at, such as the State of the Union address. However, there can be a number of sporadic press conferences and the like all throughout the year. Depending on the subject matter in question, these can have a drastic effect on the markets as they can affect things like consumer sentiment or investor confidence.

How this might affect the currency markets, and impact your trades

While not involved in setting interest rates or a lot of other monetary policy, Presidents, Prime Ministers, and other world leaders can have a great effect on their respective country’s currency value. Their rhetoric or worldview may change sentiment when comparing one currency to another. For example, President Trump would speak frequently about relations with China, and in doing so, create volatility in the USD/CNY currency pair.

Presidential Election

Release Date: Every 4 years

Political parties mostly support elected leaders in the United States. These groups - associations of politicians, candidates for elected office, and their supporters - pick and help the representatives they want to represent them in elections. In the United States, there are two main political parties that hold the majority of elected positions: The Republicans and the Democrats. Other parties can play a role in an election, but for the past 150 years, all U.S. presidents have come from one of the two major parties.

How this might affect the currency markets, and impact your trades

With expected movements across currency pairs, indices, and commodities, the run-up to the election could present trading opportunities. Such uncertainty is also expected to last until at least January of the following year. EUR/USD, USD/JPY, GBP/USD, and other common USD crosses are likely to be influenced by the winner's upcoming foreign policies.

Retail Sales m/m

Also known as: Advance Retail Sales
Release Date: Monthly, 16 days after month-end

Retail sales are a clear predictor of an economy's health and whether it is shrinking or expanding. Nearly half of personal consumption is made up exclusively by retail sales. Consequently, retail sales account for nearly one-third of GDP in terms of direct economic activity.

How this might affect the currency markets, and impact your trades

The percentage rises and falls often reflect how rapidly the economy is shrinking or expanding. Retail sales that are extremely high or extremely weak may also place upward or downward pressure on prices. As retail sales increase, upward pressure on prices can grow, particularly if sales figures continue to rise month after month. The same is true when sales are extremely low, placing downward pressure on prices as customers spend less, and again when sales are extremely low over an extended period of time.

Trade Balance

Also known as: International Trade in Goods and Services
Release Date: Monthly, 35 days after month-end

The Trade Balance is the net amount of a country's goods exports and imports, excluding all capital transactions, deposits, and other financial components. If the value of exports exceeds the value of imports, a country's trade balance is positive (meaning it has a surplus). If the value of imports exceeds the value of exports, a country's trade balance is negative, or it reports a deficit. The official term for net exports in the current account is the Trade Balance.

How this might affect the currency markets, and impact your trades

The country's currency is directly influenced by Trade Balance. If a country's exports outweigh its imports, we may assume that its goods are in high demand on the global market. This would have a direct positive effect on that country's currency as demand for its currency grows. This occurs because if there is a strong demand for the goods, prices rise and the currency's value rises. In contrast, if a country's imports exceed its exports, it means that there is less global demand for the goods manufactured by that country. The result of this is a decrease in demand for the currency, and therefore a weakening in its overall value.

Treasury Sec ____ Speaks

Release Date: Undefined

The United States Treasury Secretary makes regular speeches, however only the ones that might have a direct impact on the financial markets will be listed with the Forex Factory Economic Calendar.

How this might affect the currency markets, and impact your trades

The Treasury Secretary is the mouthpiece of the President’s economic policies and any speeches that he makes that are listed on the Forex Factory Economic Calendar could signal a shift in monetary policy. These speeches are often used to communicate those shifts to both the public as well as foreign governments.

Unemployment Claims

Also known as: Jobless Claims; Initial Claims
Release Date: Weekly, first Thursday after week-end

For a trader, the word unemployment is extremely important because it reveals information about the current state of the nation's economy. Jobless claims are considered a lagging indicator, which means that the indicator changes only as the economy changes and is expressed in the figures. It triggers a lot of market uncertainty after each release because this knowledge alone affects economic stability, monetary policy, and interest rates in the upcoming decision making by the banks.

If the initial jobless claims are too high, the government attempts to boost the struggling economy by generating employment and introducing tax-free schemes for the unemployed. In the United States, the Federal Reserve would lower the Federal Funds Rate, thus loosening monetary policy. If this fails to stimulate the economy, the federal government will implement monetary policy initiatives, recruit workers for public works programmers, and attempt to stimulate demand through tax breaks.

Lower-than-expected figures usually result in more jobs earning wages and higher consumption spending. This will result in inflationary pressure, which causes interest rates to increase. High levels of unemployment resulted in lower wages, decreased economic activity, and decreased consumption. However, a decrease in initial jobless claims is a hopeful sign and could push the currency upward.

How this might affect the currency markets, and impact your trades

The initial jobless claims are extremely important to forex traders because they are very effective in predicting how monetary policy will respond to Labour market conditions. Monetary policy changes, or a lack thereof, may often cause the value of a currency to rise or fall. Though it may be considered a meaningless number at times, there is no denying that the initial jobless claims can have an effect on currency prices.

Unemployment Rate

Also known as: Jobless Rate
Release Date: Monthly, on the first Friday of the new month

The unemployment rate is the proportion of the work force that is unemployed. It is a lagging indicator, which means that it rises and falls in response to changing economic conditions rather than predicting them. When the economy is in bad shape and work opportunities are scarce, the unemployment rate is likely to increase. It can be expected to fall as the economy is expanding at a healthy pace and jobs are abundant.

How this might affect the currency markets, and impact your trades

The unemployment rate is used by investors and the general public to understand the state of a country's economy and as an indicator of how well the government is running the country. A high unemployment rate indicates that the economy is unable to provide enough jobs for those looking for work. High unemployment not only exacerbates social problems and prolongs family misery, but it also makes the country less appealing to foreign investors, reducing investment funds coming into the country.

High Impact Forex Factory News Events that Affect The Euro (EUR)

Your Title Goes Here
CPI Flash Estimate y/y

Acronyms:
- CPI: Consumer Price Index
Release Date: Monthly, on the last business day of the month

The CPI, or inflation rate, is at the top of every central bank's agenda. Changes in inflation cause the central bank's monetary policy to change from easing to tightening, from dovish to hawkish language, and so on. This is due to the fact that every central bank in the world has an inflation mandate, whether it is the entire mandate or just a portion of it. A traditional mandate is to hold inflation below or close to 2%. There is a vigorous discussion these days about whether this inflation level is acceptable in the current environment, but we're sticking with it until something changes because it helps economies to develop at a normal rate.

How this might affect the currency markets, and impact your trades

Inflation is a significant factor affecting all currencies, including the Euro. In general, countries with high levels of inflation compared to other countries will see their currency depreciate, resulting in relatively equal prices of goods between countries. Furthermore, higher-than-expected inflation would cause the central bank to raise interest rates in order to control that inflation. It’s these changes in interest rates that will create volatility in the markets and present opportunities for trading.

ECB Monetary Policy Meeting Accounts

Acronyms:
- ECB: European Central Bank
Release Date: 8 times per year, 4 weeks after the Minimum Bid Rate is announced

The ECB's primary duty, connected to its key objective of price stability, is to formulate monetary policy. This entails deciding on monetary targets, key interest rates, and the availability of reserves in the Eurozone, as well as setting guidelines for putting those decisions into action. Every six weeks, the ECB holds monetary policy decision meetings, and the ECB is open about the reasons behind its decisions. Following each such meeting, it holds a press conference.

How this might affect the currency markets, and impact your trades

Traders and investors are especially concerned about the effect of ECB policy on the prices of EUR pairs, European indices, stocks, and other properties. As a result, several traders will try to forecast which direction monetary policy will take ahead of each meeting. Unexpected interest rate hike announcements generally cause the EUR to rise against its rivals, while unexpected rate cuts may cause the EUR to fall.

ECB President ____ Speaks

Acronyms:
- ECB: European Central Bank
Release Date: Undefined

The President of the European Central Bank is the single most influential person when it comes to the value of the Euro. As the head of the institution which has control over short-term interest rates, any speeches or appearances may contain clues to how monetary policies, especially interest rates, may change in the future.

How this might affect the currency markets, and impact your trades

It is the duty of a professional trader to ensure they are constantly keeping up to date with any engagements of the ECB President if they are trading on Euro cross-pairs such as the EUR/USD, EUR/GBP, and so on. A single statement can create vast swings and high volatility conditions.

ECB Press Conference

Acronyms:
- ECB: European Central Bank
Also known as: Interest Rate Statement; ECB News Conference
Release Date: 8 times per year, about 45 minutes after the Minimum Bid Rate is announced

The ECB's Governing Council is in charge of monetary policy, with the aim of achieving an inflation rate of just under 2% across the eurozone. Meetings of the Governing Council are significant dates on traders' calendars since they determine the eurozone's official interest rates.

The ECB allows euro system national central banks (NCBs) to use these rates for transactions with commercial banks. The three primary rates are as follows: The minimum bid rate is the interest rate for one-week loans. The deposit rate is the interest rate charged on deposits with NCBs. The marginal lending rate is the interest rate on overnight loans.

How this might affect the currency markets, and impact your trades

Traders anticipate that interest rate hikes would have a negative impact on the valuation of their stocks, bonds, and other assets while increasing the value of the Euro compared to other currencies. Lowering interest rates or implementing quantitative easing, on the other hand, is likely to have the opposite impact.

EU Economic Summit

Acronyms:
- EU: European Union
- ECB: European Central Bank
Release Date: Undefined

The Euro Summit offers policy guidelines to ensure the Economic and Monetary Union's smooth operation. This aids in the coordination of all relevant policy areas among Eurozone member states. Regular high-level discussions on the particular obligations associated with Eurozone membership often help Eurozone countries to take the Eurozone dimension into account in their national policy-making. Since Eurozone issues are of political and economic interest to all EU countries, they are also addressed at European Council meetings on a regular basis.

How this might affect the currency markets, and impact your trades

These summits can be broad in focus, but will often follow a similar theme depending on the current status of the European Union, and the rest of the world. Depending on the subject matter, these summits can have a major effects on the markets. Therefore, it is wise to ensure you are aware of each meeting’s agenda and potential effect on the markets before you consider placing any trades on EUR pairs during the days of the summit.

Eurogroup Meetings

Release Date: Undefined

The Eurogroup is an informal body in which ministers from Eurozone member countries address issues concerning their common obligations regarding the Euro. Its primary responsibility is to ensure that the Eurozone member countries' economic policies are closely coordinated. It also aims to foster conditions conducive to stronger economic growth. The Eurogroup is also in charge of organizing and following up on Euro Summit meetings. The commissioner for economic and financial affairs, as well as the commissioner for taxes and customs, and the president of the European Central Bank, also attend Eurogroup meetings.

How this might affect the currency markets, and impact your trades

Changes in monetary policy may have a direct effect on all asset classes. However, through understanding the intricacies of monetary policy, investors can place their portfolios to benefit from policy adjustments and increase returns.

European Parliamentary Elections

Also known as: European Union Elections
Release Date: Every 5 years

751 members will be elected to the European Parliament by voters from 28 European Union countries

These elections are vitally important for the Euro as the European Parliament is the world’s only legislative body whose decisions can have clear legal and financial consequences in several sovereign nations. The European Parliament is a directly elected EU legislature with supervisory and budgetary duties, as well as the role of public debate and action on EU-level issues. The European Parliament has authority over key decisions such as how public funds are allocated through the European Union's shared budget and how the European Single Market is governed.

How this might affect the currency markets, and impact your trades

The greatest worry for traders will be the amount of influence the EU elections will have on the single currency. After all, the results of the elections would have an effect on trade and foreign relations policies. History however has shown that EU elections have minimal effect on the euro. This contrasts sharply with the euro's instability during the German and French elections.

French Flash Manufacturing PMI

Acronyms:
- PMI: Purchasing Managers’ Index
Release Date: Monthly, 3 weeks into the month

Due to its nature, the Flash PMI is often a very strong indicator of where the final PMI figure may be. The flash PMI reading is an estimation of a country's Manufacturing Purchasing Managers' Index (PMI) based on approximately 85 percent to 90 percent of total PMI survey responses per month. The goal of the Flash PMI is to foreshadow the final PMI data as accurately as possible.

How this might affect the currency markets, and impact your trades

In general, higher-than-expected releases and previous data indicate that producers are more positive and optimistic about future business. As a result, demand for the Euro increases. Readings that begin to fall below forecast and previous data, on the other hand, may indicate that there is less trust and growth in the economy. As a result, demand for the Euro falls.

French Flash Services PMI

Acronyms:
- PMI: Purchasing Managers' Index
Release Date: Monthly, 3 weeks into the month

The PMI, or Purchasing Managers Index, is a critical economic news release in every major economy that indicates the state of economic growth. The PMI, which shows whether the economy is shrinking or expanding, is a survey closely followed by traders of all kinds, including scalpers, swing traders, and investors.

How this might affect the currency markets, and impact your trades

In general, higher-than-expected releases and previous data indicate that producers are more positive and optimistic about future business. As a result, demand for the Euro increases. Readings that begin to fall below forecast and previous data, on the other hand, may indicate that there is less trust and growth in the economy. As a result, demand for the Euro falls.

French Presidential Election

Release Date: Every 5 years

The French Presidential elections are conducted in two parts. Candidates who find themselves advancing to the second round of these elections will have to expand beyond their core voters to whom they will have effectively mobilised in the first round. Due to the way these elections are conducted, oftentimes you can find large shifts in rhetoric as the elections transition into this second phase.

How this might affect the currency markets, and impact your trades

As France is a major contributor to the overall progress of the EU and consequently the Euro, the individual that holds the seat of President will have a large influence on the value of the Euro. It’s important to have a decent understanding of the candidates, and their political viewpoints in order to predict what effect they might have on the Euro were they to be elected by the French populace.

German Buba President ____ Speaks

Acronyms:
- Buba: Deutsche Bundesbank
- ECB: European Central Bank
Release Date: Undefined

The President of the Bundesbank, is traditionally one of the more hawkish members of the European Central Bank (ECB), which sets main short-term interest rates across the eurozone, affecting the value of the euro. Their remarks can influence a short-term positive or negative trend.

How this might affect the currency markets, and impact your trades

The President of the Bundesbank holds a very influential position when it comes to the value of the Euro. Germany is the single most powerful economy within the European Union and holds a great deal of economic power within the Union. It therefore correlates that the views and actions of the Bundesbank President may have a significant impact on market volatility where Euro currency pairs are concerned.

German Constitutional Court Ruling

Release Date: Undefined

The Federal Constitutional Court's primary function is judicial review, and it has the authority to find laws void, rendering it ineffective. In this regard, it is similar to other supreme courts with judicial review authority; moreover, the court has a range of additional powers and is recognized as one of the world's most interventionist and powerful national courts. Unlike other supreme courts, the constitutional court does not act as a normal appellate court from lower courts or the Federal Supreme Courts on any violation of federal laws (except in cases involving constitutional or public international law).

How this might affect the currency markets, and impact your trades

Depending on what is being ruled on, this event can have unexpected effects on the financial markets. It’s important to keep up to date on any upcoming court rulings by the German Constitutional Court if you’re trading Euro currency pairs.

German Federal Elections

Release Date: Every 4 years, snap-elections possible in between

The Bundestag is the Federal Parliament of Germany. Similar to the House of Commons in the United Kingdom, or the House of Representative in the United States, it is the only directly-elected body on the federal level that is chosen by the German people.

How this might affect the currency markets, and impact your trades

As Germany is the largest contributor to the overall progress of the EU and consequently the Euro, the members that will make up the German Federal Parliament and go on to form a government will have a large influence on the value of the Euro. It is important to have a decent understanding of the parties, and their political viewpoints to predict what effect they might have on the Euro were they to be elected by the German populace.

German Flash Manufacturing PMI

Acronyms:
- PMI: Purchasing Managers' Index
Release Date: Monthly, 3 weeks into the month

Due to its nature, the Flash PMI is often a very strong indicator of where the final PMI figure may be. The flash PMI reading is an estimation of a country's Manufacturing Purchasing Managers' Index (PMI) based on approximately 85 percent to 90 percent of total PMI survey responses per month. The goal of the Flash PMI is to foreshadow the final PMI data as accurately as possible.

How this might affect the currency markets, and impact your trades

In general, higher-than-expected releases and previous data indicate that producers are more positive and optimistic about future business. As a result, demand for the Euro increases. Readings that begin to fall below forecast and previous data, on the other hand, may indicate that there is less trust and growth in the economy. As a result, demand for the Euro falls.

German Flash Services PMI

Acronyms:
- PMI: Purchasing Managers' Index
Release Date: Monthly, 3 weeks into the month

The German Flash Services PMI is a survey of about 800 Purchasing Managers that focuses on the levels of business relating to employment, inventories, new orders, prices, production, and supplier deliveries.

Larger company responses have a greater effect on the final index numbers than small company responses. The percentage of respondents reporting an increase, decline, or no change since the previous month is shown for each question asked. An index is derived from these percentages: a level of 50.0 indicates no change from the previous month, a level above 50.0 indicates an increase, and a level below 50.0 indicates a decrease.

How this might affect the currency markets, and impact your trades

In general, higher-than-expected releases and previous data indicate that producers are more positive and optimistic about future business. As a result, demand for the Euro increases. Readings that begin to fall below forecast and previous data, on the other hand, may indicate that there is less trust and growth in the economy. As a result, demand for the Euro falls.

German ifo Business Climate

Acronyms:
- ifo: Information and Forschung
Release Date: Monthly, 3 weeks into the month

The German Ifo Business Climate is essentially a composite index focused on a survey of approximately 7,000 companies across Germany in various sectors such as manufacturing, building, wholesale, and retail. Business owners are questioned about current economic conditions as well as their plans for the next six months in a survey conducted by the Information and Forschung (Ifo) Institute for Economic Research.

How this might affect the currency markets, and impact your trades

Many regard the survey as a credible leading indicator for Germany, the eurozone's largest economy. Many people credit the report's accuracy to its broad sample size and coverage of a wide range of industries. A closer examination of the study shows rising sectors in the German economy are failing and which are thriving. Using this information, traders can better predict the overall change in value that may befall the Euro as a result of German Business.

German Prelim CPI m/m

Acronyms:
- CPI: Consumer Price Index
Release Date: Monthly, around the end of the month

The Statistisches Bundesamt Deutschland's CPI (Consumer Price Index) calculates the average price shift for all goods and services that have been purchased by households for the purposes of consumption. The Consumer Price Index (CPI) is the primary indicator used to monitor inflation and changes in buying patterns.

How this might affect the currency markets, and impact your trades

The Consumer Price Index (CPI) is one of the most important economic indicators influencing forex trading. The currency of a country is directly influenced by its own central bank's interest rate decisions, and indirectly by the decisions of central banks from other countries. Forex traders are advised to track the CPI of most major trading nations, including the United States, the European Union, Japan, and Australia.

German ZEW Economic Sentiment

Acronyms:
- ZEW: Zentrum fur Europaische Wirtschaftsforschung
Release Date: Monthly, on the second or third Tuesday of the month

Since 1991, the ZEW Financial Market Test has interviewed up to 300 experts from banks, insurance firms, and financial divisions of selected organisations about their evaluations and predictions for significant international financial market data. Participants are polled on their six-month forecasts for the economy, inflation rates, interest rates, financial markets, and exchange rates in the Eurozone, Germany, Japan, the United States, the United Kingdom, France, and Italy, as well as the oil price. The ZEW Financial Market Survey results are used to establish and publish one indicator: The ZEW Indicator of Economic Sentiment is a leading indicator of economic sentiment.

How this might affect the currency markets, and impact your trades

The ZEW Economy Sentiment analysis is a form of fundamental analysis that is used by short-term traders rather than long-term traders. This measure is focused on sentiment, and the Forex market is nothing more than a compilation of all those thoughts, emotions, and behaviour. If people have jobs, the economy is doing well, and interest rates are rising as a result of rising sentiment. Residents will then expect the country's currency to rise in value in the long run. People and investment banks want to put their money into rising, prosperous economies that are doing well. A relevant sentiment rule is that the more something is known to the consumer, the less of an effect it will have in general. This is critical to remember when attempting to recognise ZEW Sentiment and the anticipated market reaction triggered by that sentiment.

Greek Parliamentary Elections

Also known as: General Election
Release Date: Every 4 Years, snap-elections possible in between

The Greek Parliament is made up of 300 seats. The Greek electoral system is an interesting one in that it is founded on the principal of Proportional Representation. While made up of 300 seats, only 250 of those seats are decided in the election, and the remaining 50 are awarded to the party that wins a majority, or a plurality of seats if a majority is not reached. Additionally, any party that does not reach a nationwide threshold of 3% of the vote is not awarded any seats in Parliament.

This system ensures a kind of stability; however, it does come with its own unique problems.

In the Greek 2012 General Election, the difference in vote share was just 3% with the New Democracy Party holding 29.7% of the vote, and Syriza holding 26.9% of the vote. The margin between them is small, however as the New Democracy Party held the highest vote share, it was awarded those extra 50 seats and went on to hold 43% (129) of the seats in the Greek Parliament while Syriza only held 24% (71) of the seats.

How this might affect the currency markets, and impact your trades

Greece underwent a major government-debt crisis which began as a result of the global financial crisis of 2007-2008. As a member of the Eurozone, there was a lack of flexibility when it came to monetary policy. Eventually, Greece saw 12 rounds of tax increases, spending cuts, and reforms between 2010 and 2016.

As the Greek economy remains in a state of recovery, and due to the restrictions on monetary policy as a part of the Eurozone, there may be political motivations to withdraw from either the EU or the Eurozone. Some speculate that the way Greece was treated by the EU during its crisis could have been a contributing factor to Britain’s decision to leave the European Union.

As the next potential country to exit the European Union, it is imperative that traders keep a close eye on the parties running for office, and the platform that they are running on. If a party were to advocate for leaving the EU and succeed in forming a government, there are fears that a Greek exit from the EU could create a domino-effect, leading to other countries pulling out.

It is this speculation and sentiment that may have an adverse effect on EUR currency pairs.

Greek Presidential Elections

Release Date: Every 5 Years

The President of Greece is elected by The Hellenic Parliament on behalf of the electorate. These elections are typically held 1 month prior to the incumbent president’s term coming to an end. The Hellenic Parliament is made up of 300 seats. The first and second rounds of the Presidential Elections require a super majority of 200, with the third round requiring a super majority of 180.

If after the third vote, a consensus hasn’t been reached, the parliament will be dissolved and a snap election will be held within ten days.

After reconvening, the new parliament can conduct up to three more rounds of voting, with the requisite majority in the fourth round being 180 votes and a simple majority of 151 votes in the fifth round. A sixth and final round will be determined by a relative majority between the two candidates with the most votes.

How this might affect the currency markets, and impact your trades

Greece underwent a major government-debt crisis which began as a result of the global financial crisis of 2007-2008. As a member of the Eurozone, there was a lack of flexibility when it came to monetary policy. Eventually, Greece saw 12 rounds of tax increases, spending cuts, and reforms between 2010 and 2016.

As the Greek economy remains in a state of recovery, and due to the restrictions on monetary policy as a part of the Eurozone, there may be political motivations to withdraw from either the EU or the Eurozone. Some speculate that the way Greece was treated by the EU during its crisis could have been a contributing factor to Britain’s decision to leave the European Union.

As the President is chosen by the Parliament, it can often be easier to predict which way the Presidential Elections may swing and to which individual. Due to the unique situation that Greece is in within the European Union, it is imperative that you as a trader pay close attention to whoever is chosen to be head-of-state if you are trading EUR pairs.

Italian 10-y Bond Auction

Acronyms:
- BTP: Buoni del Tesoro Poliennali
Also known as: BTP Auction
Release Date: Variable, around 14 times each year

There is no consistent impact - there are risks and opportunities. Bond market investors set yields, so they can be used to gauge investors' expectations for potential interest rates. Bond market liquidity and demand are represented by the bid-to-cover ratio, which can be used to gauge investor confidence.

Governments issue treasuries to borrow funds to offset the difference between the amount of money they collect in taxation and the amount of money they expend to refinance existing debt and/or increase cash.

How this might affect the currency markets, and impact your trades

The yield on the BTP reflects the return an investor would earn if he or she holds the treasury for the entire term. At the highest approved bid, all bidders earn the same rate. Yield volatility should be closely watched as an indication of the state of the government's debt. Traders compare the average auction rate to previous auction rates for the same security.

Italian Parliamentary Election

Also known as: General Election
Release Date: Every 5 years, snap-elections possible in between

630 members will be elected to the Chamber of Deputies, and 315 members will be elected to the Senate by voters. From these members, a government will be formed.

Italy's governments shift often. However, for the past two decades, a semblance of peace has reigned, and Italians have grown accustomed to daily voting intervals. Italy is the third largest economy in the EU, and its strength is felt far beyond its borders. After all, Europe is still haunted by Greece's bailout quagmire and the loss of Great Britain’s financial contributions. An insecure government in Italy would result in little to no progress, as well as a continued brain drain.

How this might affect the currency markets, and impact your trades

Due to this major influence on the European Union, any shift in Italy’s Parliament could have a knock-on effect on the Euro and therefore create volatility in any EUR pairs. Be aware of this if you are trading the EUR pairs during the Italian Parliamentary Election.

Main Refinancing Rate

Acronyms:
- ECB: European Central Bank
Also known as: Interest Rates; Refi Rate; Repo Rate; Minimum Bid Rate
Release Date: 8 times per year

The interest rate that banks pay the ECB when they borrow money for one week is call the Key Refinancing Operations Rate, or ‘MRO’. When they do this, they must have collateral to ensure that the money is returned. The key refinancing operations rate is one of three interest rates set by the ECB every six weeks as part of its efforts to keep eurozone prices stable.

The other two rates are the marginal lending facility rate, which is the rate at which banks can borrow from the ECB overnight (this costs them more than borrowing for one week), and the deposit facility rate, which determines the interest banks earn – or may pay in periods of negative interest rates – for depositing money with the ECB overnight.

How this might affect the currency markets, and impact your trades

The higher the rate of return, the more interest is accrued on currency invested and the higher the benefit, therefore Interest rates are critical for forex day traders. The risk in this approach, of course, is currency fluctuation, which can significantly outweigh any interest-bearing incentives. Although it is tempting to purchase higher-yielding currencies and finance them with lower-yielding ones, doing so is not always prudent. Interest rates, as well as any press release on interest rates from central banks, should be treated with caution.

Monetary Policy Statement

Acronyms:
- ECB: European Central Bank
Also known as: Interest Rate Statement
Release Date: 8 times per year

The board of directors of each central bank regulates its country's monetary policy as well as the short-term interest rate at which banks may borrow from one another. The central banks would raise interest rates to combat inflation and lower interest rates to promote credit and inject liquidity into the economy.

How this might affect the currency markets, and impact your trades

Following the news and reviewing central bank decisions should be top priorities for forex traders. Currency exchange rates begin to fluctuate as banks decide their region's monetary policy. As currency exchange rates fluctuate, traders will increase profits not only from interest accrual from carry trades, but also from market volatility. Thorough research analysis may assist a trader in avoiding surprise rate changes and properly reacting to them when they occur.

Spanish 10-y Bond Auction

Also known as: Obligaciones Auction
Release Date: Variable, around 10 times each year

There is no consistent impact - there are risks and opportunities. Bond market investors set yields, so they can be used to gauge investors' expectations for potential interest rates. Bond market liquidity and demand are represented by the bid-to-cover ratio, which can be used to gauge investor confidence.

The maturities of Spanish ODE bonds exceed five years. Governments issue treasuries to borrow funds to offset the difference between the amount of money they collect in taxation and the amount of money they expend to refinance existing debt and/or increase cash. The yield on the ODE reflects the return an investor will earn if he or she holds the treasury for the entire term. At the highest approved bid, all bidders earn the same rate.

How this might affect the currency markets, and impact your trades

Yield volatility should be closely watched as an indication of the state of the government's debt. Investors compare the average auction rate to previous auction rates for the same security. High implied volatility indicates there is a greater chance of large price swings expected by traders whereas low implied volatility signals that the market expects price movements to be relatively tame.

Spanish Parliamentary Election

Also known as: General Election
Release Date: Every 4 Years, snap-elections possible in between

In Spanish elections, direct universal suffrage is used, which means that every adult person has the right to vote. However, unlike in the UK, voters do not nominate individual candidates who belong to a party or are running as independents, but rather a regional party list from which the candidates have been pre-selected in a preferential order by the parties running.

Parties win seats in the Spanish parliament in relation to the number of votes they receive under proportional representation. The lower house, known as Congress, is where bills are introduced and debated before being sent to the upper house, or Senate, which may recommend amendments and veto any legislation.

How this might affect the currency markets, and impact your trades

Due to the major influence Spain has on the European Union, any shift in Spain’s Parliament could have a knock-on effect on the Euro and therefore create volatility in any EUR pairs. Be aware of this if you are trading the EUR pairs during the Spanish Parliamentary Election.

Spanish Unemployment Change

Also known as: Jobless Claims; Registered Unemployment; Total Jobseekers
Release Date: Monthly, 3 days after month-end

The unemployment rate is the proportion of the work force that is unemployed. It is a lagging indicator, which means that it rises and falls in response to changing economic conditions rather than predicting them. When the economy is in bad shape and work opportunities are scarce, the unemployment rate is likely to increase. It can be expected to fall as the economy is expanding at a healthy pace and jobs are abundant.

How this might affect the currency markets, and impact your trades

The unemployment rate is used by investors and the general public to understand the state of a country's economy and as an indicator of how well the government is running the country. A high unemployment rate indicates that the economy is unable to provide enough jobs for those looking for work. High unemployment not only exacerbates social problems and prolongs family misery, but it also makes the country less appealing to foreign investors, reducing investment funds coming into the country.

High Impact Forex Factory News Events that Affect The Great British Pound (GBP)

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Annual Budget Release

Release Date: Annually

Annual budgets are deemed to be balanced when estimated expenses are equal to projected revenues. It is in debt if its expenses surpass its revenues, and it is in surplus if its revenues exceed its expenses.

The annual budget details the estimated revenue and expenditures of the British Government for the coming year. The method of developing an annual budget entails weighing the sources of revenue such income taxes, NICs (National Insurance Contributions), VAT (Value-added Tax), Corporation Tax, Fuel duty, etc, against public expenditures such as Social Protection, the NHS (National Health Service), Education, Defence, Transport, Housing and of course, the interest on the National Debt.

How this might affect the currency markets, and impact your trades

The Budget influences the economy, interest rates, and financial markets. The fiscal deficit is affected by how the finance minister spends and invests revenue. The size of the deficit and the means of funding it influences the economy's money supply and interest rates.

In the same way, an increase in indirect taxes will reduce demand. This is because indirect taxes are often partly or entirely passed on to customers in the form of higher prices. Higher prices mean a decrease in demand, which in turn reduces company profit margins, slowing economic production and growth, resulting in a weaker currency.

Asset Purchase Facility

Also known as: Quantitative Easing Programme; Money Printing Programme
Release Date: Monthly

The Asset Purchasing Facility is the amount of capital that the Bank of England intends to generate and inject into the economy through open market bond purchases in order to manipulate long-term interest rates. Quantitative Easing is another name for this monetary policy method.

How this might affect the currency markets, and impact your trades

As this ‘cash injection’ increases the supply of capital within the economy, it inherently devalues a country’s currency. However, this devaluation can lead to an increase in outside investment which in turn can stimulate domestic growth as money enters the economy from foreign investment and purchasing. Conversely, a devalued currency also means that the exchange rate is a lot costlier for domestic persons and businesses to purchase foreign goods and services, and therefore also increases domestic purchasing as external goods and services become less accessible financially.

Autumn Forecast Statement

Acronyms:
- OBR: Office of Budget Responsibility
Release Date: Annually

The Autumn Statement includes an update on the government's economic policies based on the most recent Office for Budget Responsibility projections (OBR). The predictions, known as the Economic and Fiscal Outlook (EFO), are released twice a year, at the Budget and the Autumn Statement. They assess the UK economy's potential results. The OBR offers an up-to-date statement on the current state of the public finances and whether the government can achieve its own fiscal targets. The government's primary goal is to balance the budget at the end of a rolling five-year term. A balanced budget ensures that the money spent by the government on items like the NHS and welfare in a year is equal to the amount brought in by things like taxes.

How this might affect the currency markets, and impact your trades

The Autumn Statement is a kind of progress-report for government income and spending. It provides a more up-to-date economic outlook and a preview of the government’s budget for the year ahead. It outlines income levels, borrowing levels, expected spending, and financial objectives. The Autumn Statement also includes the latest independent economic forecasts which have been prepared by the Office of Budget Responsibility. Therefore, it holds a great deal of information as to how the country is fairing financially, and if it is on track to reach its fiscal targets. It is imperative that, as a trader, you are following the Autumn Forecast Statement if you are trading GBP-related pairs.

Average Earnings Index 3m/y

Also known as: Average Earnings Including Bonuses
Release Date: Monthly, 45 days after month-end

The average earnings index data shows the rates paid for Labour by British companies and the UK government. Employee incentives are also included in this article. The UK Office for National Statistics calculates and publishes it. It is in the 3MoY format, which means that it is the average of the last three months as compared to the same time the previous year. The data is presented as the percentage difference in earnings between the two periods. This data is delayed because it is published 45 days after the end of the month.

How this might affect the currency markets, and impact your trades

It is a leading indicator of market inflation CPI (Consumer Price Index) since higher earnings are more likely to cause cons. The higher the likelihood of spending, the more likely the buyer is to spend. CPI inflation is one of the Bank of England's key mandates, so a positive number is good for the Great British Pound (GBP).

Bank Stress Test Results

Release Date: Undefined

A bank stress test is a study performed under fictitious conditions to assess if a bank has sufficient resources to withstand a negative economic shock. Unfavourable circumstances, such as a deep recession or a stock market collapse, are included in these examples.

How this might affect the currency markets, and impact your trades

The results of these tests can be a major market mover as it will determine the overall stability of the Great British Pound (GBP). If the GBP remains strong under these fictitious financial crises, then it will be more likely for investors to trust that their capital will be safe within British financial institutions, and thereby increase the amount of capital within the British economy, strengthening the GBP further.

Traders should keep a close eye on these Bank Stress Tests that are often conducted in the last quarter of each year to determine the overall sentiment of financial stability and security for the GBP.

BOE Gov ____ Speaks

Acronyms:
- BOE: Bank of England
Release Date: Undefined

The Governor of the Bank of England is the most senior position in the Bank of England. The position is nominally a civil service position, but it is usually filled from within the bank, with the incumbent grooming his or her successor. The Governor of the Bank of England is also the Chairman of the Monetary Policy Committee, which plays a significant role in guiding national economic and monetary policy and is thus one of the most powerful public officials in the United Kingdom from a financial perspective.

How this might affect the currency markets, and impact your trades

The Governor of the BoE is involved in a number of talks all throughout the year, covering vast subject matters. It is important for traders to be aware of when the Governor of the BoE is speaking and what they are speaking on so that they are aware of any hints or clues to future financial and economic policy.

This will ensure that as a trader, you are up to date with what is happening with the GBP from a fundamental perspective and will be less likely to be caught off guard if there is a sudden shift in either monetary policy or sentiment.

BOE Monetary Policy Report

Acronyms:
- BOE: Bank of England
Release Date: Quarterly

The Bank of England (BoE) is the central bank of the United Kingdom. It is responsible for a wide variety of functions, similar to those of other central banks around the world. It serves as the government's bank and the last resort lender. The BoE is in charge of issuing currency and, more generally, of monetary policy.

The Monetary Policy Committee (MPC), which consists of nine members, sets interest rate policy. The MPC is headed by the Governor of the Bank of England, a civil service role usually held by a career bank employee. The committee includes the three deputy governors for monetary policy, financial stability, markets, and policy, as well as the BoE's chief economist. The Chancellor of the Exchequer appoints the remaining four members.

The Monetary Policy Report contains the BoE’s projections for both Economic Growth as well as Inflation. There may also be other pieces of information contained within the report depending entirely on the situation within the British Economy and any ongoing situations.

The Governor of the BoE also holds a press conference in order to discuss the contents of the report after it is released to the public.

How this might affect the currency markets, and impact your trades

The Monetary Policy Report is an important piece of economic data for traders, as it can assist a trader in assessing the stability and direction that the GBP and the UK economy is heading in. With insights into both inflation and economic growth, it is imperative that you, as a trader, are aware of these particular metrics, in order to make an informed decision when trading GBP-related pairs.

Claimant Count Change

Also known as: Jobless Claims; Unemployment Change
Release Date: Monthly, 16 days after month-end

The Claimant Count Change represents a change in the total number of people receiving unemployment insurance in a given month. The metric is measured using administrative data from the benefits and social support system.

This involves individuals who are claiming unemployment benefits and applying for other forms of financial assistance due to a lack of earning opportunities. These forms include, for example, the so-called Universal Credit, a monthly payment that is now replacing six previously cancelled benefits and charges. The change in the Claimant Count is related to the increase in unemployment, but they are not completely equivalent. To begin with, not all unemployed people apply for welfare and are officially registered. Second, certain individuals who are unable to work (for example, due to sickness or disability) may be eligible for compensation.

How this might affect the currency markets, and impact your trades

The measure represents the state of the Labour market. Claimant development signals a downturn in the Labour market. Employment reports are one of the most significant factors influencing the decisions of the BoE's Monetary Policy Committee; hence, instability in the Labour market can have a negative impact on the GBP.

Construction PMI

Acronyms:
- PMI: Purchasing Managers' Index
Release Date: Monthly, on the second business day of the new month

Purchasing Managers are typically on the front-line and the first to know when a company is expanding or contracting. Therefore, the Chartered Institute of Purchasing and Supply incorporates the results of surveys given to the Purchasing Managers of construction companies all over Great Britain into a ‘diffusion index’ known as the Construction PMI.

This means that instead of waiting for the final data to be released by these companies, traders and policymakers have early-access to what the final figures may look like.

Due to the nature of this index, the reading provided is centred around the 50 figure, with a reading above 50 suggesting that there is expansion within the construction industry, and a reading below 50 suggesting that there is contraction within the construction industry.

How this might affect the currency markets, and impact your trades

Construction is an important economic factor for the simple reason that it represents physical expansion. Where there is building, there is economic activity, whether it is building new homes, warehouses, or factories, construction is the first sign of how an economy is progressing.

Expansion shows that the economy is healthy, and people are able to take advantage of opportunities to either expand their business or improve their living standards with a new home. Conversely, contraction indicates that there is less demand for new structures, meaning less demand for businesses to expand their operations, or less opportunity for people to improve their living standards.

Keeping your finger on the pulse of the construction industry is what may set you apart from other traders, as it gives you an early indication of how the economy may be fairing behind the scenes.

CPI y/y

Acronyms:
- CPI: Consumer Price Index
Release Date: Monthly, 16 days after month-end

The CPI, or inflation rate, is at the top of every central bank's agenda. Changes in inflation cause the central bank's monetary policy to change from easing to tightening, from dovish to hawkish language, and so on. This is due to the fact that every central bank in the world has an inflation mandate, whether it is the entire mandate or just a portion of it. A traditional mandate is to hold inflation below or close to 2%. There is a vigorous discussion these days about whether this inflation level is acceptable in the current environment, but we are sticking with it until something changes because it helps economies to develop at a normal rate.

How this might affect the currency markets, and impact your trades

Inflation is a significant factor affecting all currencies, including the GBP. In general, countries with high levels of inflation compared to other countries will see their currency depreciate, resulting in relatively equal prices of goods between countries. Furthermore, higher-than-expected inflation would cause the central bank to raise interest rates in order to control inflation.

Current Account

Release Date: Quarterly, 85 days after quarter-end

The current account explains how a country's economy is doing. If a nation has a current account surplus, it means that it is a net lender to the rest of the world. Similarly, if a nation has a current account deficit, it indicates that the country is a net creditor. Being a net borrower with a current account deficit is not necessarily a bad thing. Countries with a current account surplus finance the economic operations of countries with a current account deficit. These countries with current account deficits are almost certainly importing more capital in order to invest in the future and use those resources for internal development. If they begin to sell more, these countries' current accounts will gradually turn to a surplus. It's just part of the business cycle. If a nation has a current account deficit, it must be offset by a financial account surplus.

How this might affect the currency markets, and impact your trades

One of the most important components of the country's balance of payments is the current account, which is directly related to currency demand. A growing current account surplus indicates that foreigners are purchasing more domestic currency in order to conduct transactions in the country. Furthermore, the current account surplus can be translated as the surplus in the country's exports. This ensures that foreign countries would have to purchase more domestic currency to pay for their imports. This would boost demand for the country's currency, causing it to strengthen in the long run. As a result, the health of the currency and the current account are related. Professional traders are always interested in the state of the current account and whether it has recently been in surplus or deficit.

Final Manufacturing PMI

Acronyms:
- PMI: Purchasing Managers' Index
Release Date: Monthly, on the first business day of the new month

Purchasing Managers are typically on the front-line and the first to know when a company is expanding or contracting. Therefore, Purchasing Managers are surveyed by institutions such as ‘Markit’ so that an accurate assessment of industries can be made. These assessments serve as leading indicators to traders and investors as they give a detailed view from the frontlines of how the economy is fairing within a particular sector.

The Manufacturing PMI consists of 600 surveyed Purchasing Managers that are asked to rate the relevant levels of business and business conditions, including things like new orders, production, supplier deliveries, inventories, prices, and employment.

Due to the nature of this index, the reading provided is centred around the 50 figure, with a reading above 50 suggesting that there is expansion within the manufacturing industry, and a reading below 50 suggesting that there is contraction within the manufacturing industry.

How this might affect the currency markets, and impact your trades

The Final Manufacturing PMI does not hold as much market-moving power as the Flash Manufacturing PMI that is released beforehand, as the effects of any change in the Manufacturing sector will already likely be priced into the markets.

With that said, if the Final and Flash figures are vastly different, the unexpected differentiation between these two figures will likely see a fresh movement in the markets regardless of the previous Flash report already being priced in.

Final Services PMI

Acronyms:
- PMI: Purchasing Managers’ Index
Release Date: Monthly, on the third business day of the new month

The manufacturing and service industries are weighted differently in terms of GDP scale. The PMI Services is a more important economic release than the PMI Manufacturing. As a result, if the PMI Manufacturing disappoints, the currency reacts by falling. The currency will rebound if the PMI Services data does not validate the poor PMI Manufacturing data. A separate PMI for the construction sector is published in the United Kingdom. It demonstrates the industry's strength and how traders respond to the revaluation.

Due to the nature of this index, the reading provided is centred around the 50 figure, with a reading above 50 suggesting that there is expansion within the services industry, and a reading below 50 suggesting that there is contraction within the services industry.

How this might affect the currency markets, and impact your trades

In general, higher-than-expected releases and previous data indicate that producers are more positive and optimistic about future business. As a result, demand for the GBP rises. Readings that begin to fall below forecast and previous data, on the other hand, may indicate that there is less trust and growth in the economy. As a result, demand for the GBP falls.

Flash Manufacturing PMI

Acronyms:
- PMI: Purchasing Managers’ Index
Release Date: Monthly, 3 weeks into the current month

In essence, the Flash Manufacturing PMI’s purpose is to foreshadow where the Final Manufacturing PMI will be. Think of it similarly to an exit-poll in an election, except in this instance, instead of just a handful of respondents, the Flash figure is based on between 85-90% of respondents, making it a strong indicator of the Final Manufacturing PMI figure.

Due to the nature of this index, the reading provided is centred around the 50 figure, with a reading above 50 suggesting that there is expansion within the manufacturing industry, and a reading below 50 suggesting that there is contraction within the manufacturing industry.

How this might affect the currency markets, and impact your trades

As it has a strong basis to foreshadow the Final Manufacturing PMI figure, the Flash Manufacturing PMI figure has been shown to repeatedly impact the markets far greater than its Final PMI counterpart. This is because market sentiment will be priced into the markets at this particular point in time due to the very unlikely variation between the two figures.

Traders should keep a close eye on the Flash PMI figures in order to ascertain how industries are performing and should then also keep a close eye on the Final PMI figures to ensure there are not any surprise variations between the two.

Flash Services PMI

Acronyms:
- PMI: Purchasing Managers’ Index
Release Date: Monthly, 3 weeks into the current month

In essence, the Flash Services PMI’s purpose is to foreshadow where the Final Services PMI will be. Think of it similarly to an exit-poll in an election, except in this instance, instead of just a handful of respondents, the Flash figure is based on between 85-90% of respondents, making it a strong indicator of the Final Services PMI figure.

Due to the nature of this index, the reading provided is centred around the 50 figure, with a reading above 50 suggesting that there is expansion within the services industry, and a reading below 50 suggesting that there is contraction within the services industry.

How this might affect the currency markets, and impact your trades

As it has a strong basis to foreshadow the Final Services PMI figure, the Flash Services PMI figure has been shown to repeatedly impact the markets far greater than its Final PMI counterpart. This is because market sentiment will be priced into the markets at this particular point in time due to the very unlikely variation between the two figures.

Traders should keep a close eye on the Flash PMI figures in order to ascertain how industries are performing and should then also keep a close eye on the Final PMI figures to ensure there are not any surprise variations between the two.

GDP m/m

Acronyms:
- GDP: Gross Domestic Product
Release Date: Monthly, 40 days after month-end

The GDP m/m, released by the Office for National Statistics each month, is a measure of the overall change in the total value of all goods and services produced within the UK economy compared to the previous month. Everything that happens within the economy, such as investments, government expenses, exports, consumption, services rendered, impacts this figure.

It is the broadest measure available for economic activity, and it is also the primary tool used to gauge the overall health of the economy within the United Kingdom.

How this might affect the currency markets, and impact your trades

The gross domestic product report, like every other piece of significant economic data, carries a lot of weight for currency traders. It shows development in a productive economy while signalling contraction in a declining one. As a result, currency traders will appear to pursue higher GDP or growth rates in the hope that interest rates will follow suit. When an economy expands at a reasonable pace, the gains flow down to the customer, raising the probability of investment and expansion. In exchange, higher spending leads to higher costs, which central banks aim to regulate by raising interest rates.

Manufacturing Production m/m

Also known as: Factory production
Release Date: Monthly, 40 days after month-end

The Manufacturing Production report outlines the total change in the value of output produced by manufacturers, adjusted for inflation. Around 80% of Industrial Production is made up by Manufacturing, and therefore has a significant impact in the overall influence that Industrial Production will have on the financial markets.

How this might affect the currency markets, and impact your trades

The Manufacturing Production report is a leading indicator of economic health. Production is quick to react to any fluctuations within the business cycle and is therefore inherently correlated to consumer conditions such as employment and/or earnings.

Due to the nature of this report, it’s important that traders stay informed on Manufacturing Production in order to determine the current health of the economy, and how that might change in the future if there are vast swings within the report compared to previous releases.

Monetary Policy Report Hearings

Acronyms:
- BOE: Bank of England
- MPC: Monetary Policy Committee

Also known as: Treasury Committee Hearings; Select Committee Hearings
Release Date: Quarterly

At the Monetary Policy Report Hearings, the Governor of the BoE (Bank of England) and members of the MPC (Monetary Policy Committee) testify on the economic outlook and inflation in front of the Treasury Committee of the UK Parliament.

How this might affect the currency markets, and impact your trades

These hearings can often last a few hours and can create a fair amount of market volatility during that time. These hearings will often contain comments directly referencing the currency markets, which as a trader, you should definitely be listening out for.

Members of the MPC are the ones who set the key interest rate, and so it is incredibly important to be aware of any public engagements that they are partaking in as there may be subtle hints regarding future changes to interest rates, or monetary policies in general.

Monetary Policy Summary

Acronyms:
- MPC: Monetary Policy Committee
Release Date: Monthly

The Monetary Policy Summary is one of the primary tools used by the MPC (Monetary Policy Committee) to communicate their monetary policies to investors and the wider public. It contains a number of policy measures, including the outcome of their Interest Rate votes and a commentary on the influences that were behind those votes.

Most importantly of all, it discusses the current outlook from an economical standpoint, and may offer clues on how future votes on interests may differ.

How this might affect the currency markets, and impact your trades

Following the news and reviewing central bank decisions should be top priorities for forex traders. Currency exchange rates begin to fluctuate as banks decide their region's monetary policy. As currency exchange rates fluctuate, traders will increase profits not only from interest accrual from carry trades, but also from market volatility. Thorough research analysis may assist a trader in avoiding surprise rate changes and properly reacting to them when they occur.

MPC Asset Purchase Facility Votes

Acronyms:
- APF: Asset Purchase Facility
- BOE: Bank of England
- MPC: Monetary Policy Committee
Release Date: Monthly

The asset purchase vote for each MPC member during the most recent meeting is recorded in the BOE's MPC meeting minutes. The vote breakdown reveals which members are changing their position on asset purchases and how close the committee is to enacting a reform in potential purchases.

How this might affect the currency markets, and impact your trades

The higher the rate of return, the higher the interest rate on the money invested in the forex market and the higher the benefit. Using these metrics, a trader may build an estimate of a rate shift. Usually the economy performs well, as these metrics grow and the thresholds either need to be improved or unchanged, if the growth is minor. Similarly, major decreases would anticipate a rate reduction to encourage borrowing.

MPC Member ____ Speaks

Acronyms:
- BOE: Bank of England
- MPC: Monetary Policy Committee
Release Date: Undefined

Members of the MPC (Monetary Policy Committee) hold a large amount of influence over monetary policies and decisions. They are involved in various speaking engagements such as the Jackson Hole Symposium, and various other panel discussions or conferences.

How this might affect the currency markets, and impact your trades

Members of the MPC are the ones who set the key interest rate, and so it is incredibly important to be aware of any public engagements that they are partaking in as there may be subtle hints regarding future changes to interest rates, or monetary policies in general.

MPC Official Bank Rate Votes

Acronyms:
- MPC: Monetary Policy Committee
Release Date: Monthly

Central Bank Meetings are sessions of a central bank's monetary policy committee on a regular basis (MPC). The members assess the efficacy of the current system in light of the current economic situation. As the country's top monetary regulator, the central bank is responsible for fostering a stable economic climate conducive to long-term development. The MPC's mission is to develop monetary policy that will direct the central bank in achieving this primary goal.

The MPC Official Bank Rate Votes are the outcome of the MPCs votes on how interest rates should be adjusted.

The figure will be reported in the format ‘X-X-X’.

The first number represents how many members of the MPC votes to increase interest rates.

The second number represents how many voted to decrease interest rates.

The third number represents how many voted to hold interest rates.

How this might affect the currency markets, and impact your trades

When a central bank decides to lift a benchmark interest rate, the primary aim is to minimise domestic monetary supply. As a result, the action is referred to as "tightening" because resources will become scarcer. A tightening policy is usually justified by a number of factors, the most important of which is the rise in inflation. As inflation becomes uncontrollable, currency value, demand, savings, and spending become unstable.

Official Bank Rate

Acronyms:
- BOE: Bank of England
- MPC: Monetary Policy Committee

Also known as: Interest Rates
Release Date: Monthly

The Official Bank Rate is the interest rate at which the Bank of England lends money to financials institutions overnight. The rate is decided by MPC members who vote on where to set the rate, with individual votes published in the MPC Meeting Minutes 2 weeks after the rate is set.

How this might affect the currency markets, and impact your trades

Currency valuation is influenced by a great many factors, but few factors more than short term interest rates. These rates are paramount to the overall valuation of a currency and traders should spend a lot of time analysing various economic indicators to determine where changes to interest rates may happen in the future.

This particular release can be overshadowed by the Monetary Policy Summary which focuses on the future, and as there are also a number of indicators which help to predict where interest rates will be set, rate decisions can already be priced into the markets, meaning impact can often be negligible.

Parliamentary Elections

Also known as: General Election; House of Commons Election
Release Date: Every 5 years, snap-elections possible in between

Britain is a constitutional monarchy with one of the world's oldest representative electoral systems. Voters in the United Kingdom elect their local representatives (known as MPs) to Parliament, and the party with the most MPs has the right to appoint its leader as the country's prime minister. There are 650 parliamentary seats in the country. The majority of them, 533, serve English areas, with Scotland having 59 seats, Wales having 40, and Northern Ireland having 18. Each parliamentary seat represents roughly 70,000 voters and over 98,000 members of the general public. Historically, parties required slightly more than a third of the popular vote to elect a majority of MPs and form a government. The "first past the post" structure Favours solid, one-party rule and a strong executive branch. When a political party wins a majority of seats in parliament, their candidate for prime minister is introduced to the queen or king and sworn in.

How this might affect the currency markets, and impact your trades

The United Kingdom’s elections typically revolve around the two largest parties. The Conservative Party, and the Labour Party. Both of these parties typically share quite different visions for the country, with one advocating for cuts to both spending and taxes, with the other advocating for investment and an increase to higher rates of taxation.

The public perception of these parties is typically what sways the vote one way or the other, and the public perception is largely influenced by the various forms of media, both publicly and privately owned.

What is interesting with the UK elections is that according to opinion polls, the ideals that the Labour Party will often put forward, such as the nationalisation of the Royal Mail, Railway companies, Water companies, Energy companies, and Bus companies are favoured by the majority of the British Public. Yet this simply does not translate when it comes to the public voting at the ballot box.

The exit-poll in the UK Parliamentary Elections has been relatively accurate for past election cycles, and therefore the largest impact on the markets will often be experienced when this exit poll is released.

PPI Input m/m

Acronyms:
- PPI: Producer Price Index
- CPI: Consumer Price Index
Release Date: Monthly, 15 days after month-end

PPI is a critical piece of economic data because it signals potential anticipated inflation. Traders track PPI in forex trading because of the positive relationship between inflation and interest rates, but essentially, traders are concerned about how changes in interest rates will impact currency pairs.

How this might affect the currency markets, and impact your trades

If the consumer price index rises, interest rates will rise as well. As interest rates rise, saving money becomes more appealing because the reward (interest) is higher than before. Spending money becomes more expensive when investors lose out on the higher interest rate if they prefer to spend rather than save. As a consequence, rising PPI could lead to higher interest rates and a stronger currency.

Prelim GDP q/q

Acronyms:
- GDP: Gross Domestic Product
Also known as: GDP First Estimate
Release Date: Quarterly, 40 days after quarter-end

The Prelim GDP q/q, released by the Office for National Statistics each quarter, is a measure of the overall change in the total value of all goods and services produced within the UK economy compared to the previous quarter. Everything that happens within the economy, such as investments, government expenses, exports, consumption, services rendered, impacts this figure.

It is the broadest measure available for economic activity, and it is also the primary tool used to gauge the overall health of the economy within the United Kingdom.

How this might affect the currency markets, and impact your trades

The gross domestic product report, like every other piece of significant economic data, carries a lot of weight for currency traders. It shows development in a productive economy while signalling contraction in a declining one. As a result, currency traders will appear to pursue higher GDP or growth rates in the hope that interest rates will follow suit. When an economy expands at a reasonable pace, the gains flow down to the customer, raising the probability of investment and expansion. In exchange, higher spending leads to higher costs, which central banks aim to regulate by raising interest rates.

The Prelim GDP is often referred to as the ‘First Estimate’ and has been shown to impact the markets significantly more than the Final GDP figure, often referred to as the ‘Second Estimate’.

Prime Minister ____ Speaks

Release Date: Undefined

The Prime Minister is the leader of Her Majesty's Government and is largely responsible for the government's strategy and decisions. The Prime Minister, as the leader of the UK government, is also responsible for overseeing the functioning of the Civil Service and government agencies. They are also responsible for selecting members of the Cabinet, the ministers that are responsible for such governmental aspects as Transport, Education, Health, Foreign Affairs, Defence, Housing, and so on.

How this might affect the currency markets, and impact your trades

As the most important political figure in the United Kingdom, whatever the Prime Minister says can have a large impact on the financial markets. While their public engagements can occasionally have little bearing on the financial markets, there are times when the Prime Minister speaks on such matters that can greatly influence policies which will shape the UK’s economic policies.

It is important to take notice of any speaking engagements that include the Prime Minister as any comments they make can have an impact on the value of the GBP.

Public Sector Net Borrowing

Release Date: Monthly, 23 days after month-end

Public Sector Net Borrowing refers to a report on the difference in value between the income and spending for local governments, central government, and public corporations within the United Kingdom during the previous month.

If the number is positive, this indicates a deficit within the budget. If the number is negative, this indicates a surplus within the budget. (Please note that this figure also includes any financial interventions)

How this might affect the currency markets, and impact your trades

This can be an important piece of data for traders as it will show how the country is handling its finances at the level of both central government and local government, while also giving a clear indication of how public services and corporations are faring.

While the impact may not always be great, there may be times when there is a vast unexpected differential in the forecasted figure and the actual figure, which may have a significant impact in the markets.

Retail Sales m/m

Also known as: Sales Volume; All Retailers sales
Release Date: Monthly, 20 days after month-end

The Retail Sales report represents the change in the total value of sales at the retail level adjusted for inflation. As sales in the retail sector account for the majority of overall economic activity, it is a fantastic indicator of how the United Kingdom economy is performing, and the current levels of consumer spending.

How this might affect the currency markets, and impact your trades

The percentage rises and declines often reflect how rapidly the economy is shrinking or expanding. Retail sales that are extremely high or extremely weak may also place upward or downward pressure on prices. As retail sales increase, upward pressure on prices can grow, particularly if sales figures continue to rise month after month. The same is true when sales are extremely low, placing downward pressure on prices as customers spend less, and again when sales are extremely low over an extended period of time.

Second Estimate GDP q/q

Acronyms:
- GDP: Gross Domestic Product
Also known as: Revised GDP
Release Date: Quarterly, 55 days after quarter-end

The Gross Domestic Product (GDP) is one of the most commonly used indicators of an economy's performance or development. It is known as the total value of goods and services generated within the borders of a country in a given time period—monthly, quarterly, or annually. GDP is a good measure of an economy's size, and the GDP growth rate is probably the best indicator of economic growth, while GDP per capita has a similar relationship with the trend in living standards over time.

How this might affect the currency markets, and impact your trades

The gross domestic product report, like every other piece of significant economic data, carries a lot of weight for currency traders. It shows development in a productive economy while signalling contraction in a declining one. As a result, currency traders will appear to pursue higher GDP or growth rates in the hope that interest rates will follow suit. When an economy expands at a reasonable pace, the gains flow down to the customer, raising the probability of investment and expansion. In exchange, higher spending leads to higher costs, which central banks aim to regulate by raising interest rates.

The Second Estimate GDP is often referred to as the ‘Final GDP’ and has been shown to impact the markets significantly less than the Prelim GDP figure, often referred to as the ‘First Estimate’. This is due to the GDP figure being priced in during the Prelim GDP figure as variation between these two figures is typically minimal. However, if there is a significant variation between these two figures, the Second Estimate GDP can have a significant impact in its own right as the new figure is priced into the markets.

Unemployment Rate

Also known as: ILO Unemployment Rate; Jobless Rate
Release Date: Monthly, 45 days after month-end

Though it is released monthly, the Unemployment Rate equals the total percentage of the UK workforce that is currency unemployed and actively seeking forms of employment during the past 3 months.

How this might affect the currency markets, and impact your trades

Unemployment is typically seen as a lagging economic indicator; however, it still serves as an important factor for traders as a lack of employment means less income, less income means less spending, and less spending means less economic activity could be expected in the short term.

Second to this is the fact that unemployment is a large factor when it comes to policymaking decisions by both government and the Monetary Policy Committee.

Traders should be aware of the Unemployment figures for the United Kingdom if they are looking to trade GBP pairs as higher unemployment could indicate a weaker currency.

High Impact Forex Factory News Events that Affect The Australian Dollar (AUD)

Your Title Goes Here
Annual Budget Release

Release Date: Annually

Annual budgets are deemed to be balanced when estimated expenses are equal to projected revenues. It is in debt if its expenses surpass its revenues, and it is in surplus if its revenues exceed its expenses.

The annual budget details the estimated revenue and expenditures of the Australian Government for the coming year. The method of developing an annual budget entails weighing the sources of revenue such as Personal Income Taxes, Company Taxes, Goods and Services Taxes, Excise and Customs Duty, etc, against public expenditures such as Social Security and Welfare, Health, General Revenue Assistance, Education, Defence, Public Debt Interest, etc.

How this might affect the currency markets, and impact your trades

The Budget influences the economy, interest rates, and financial markets. The fiscal deficit is affected by how the finance minister spends and invests revenue. The size of the deficit and the means of funding it influences the economy's money supply and interest rates.

In the same way, an increase in indirect taxes will reduce demand. This is because indirect taxes are often partly or entirely passed on to customers in the form of higher prices. Higher prices mean a decrease in demand, which in turn reduces company profit margins, slowing economic production and growth, resulting in a weaker currency.

Building Approvals m/m

Release Date: Monthly, 30 days after month-end

The Building Approvals Report shows the overall change in the number of new building approvals that have been issues by the Australian Government. The figure is presented as a percentage comparing the month against the previous month.

How this might affect the currency markets, and impact your trades

Construction is an important economic factor for the simple reason that it represents physical expansion. Where there is building, there is economic activity, whether it is building new homes, warehouses, or factories, construction is the first sign of how an economy is progressing.

Expansion shows that the economy is healthy, and people are able to take advantage of opportunities to either expand their business or improve their living standards with a new home. Conversely, contraction indicates that there is less demand for new structures, meaning less demand for businesses to expand their operations, or less opportunity for people to improve their living standards.

Keeping your finger on the pulse of the construction industry is what may set you apart from other traders, as it gives you an early indication of how the economy may be fairing behind the scenes.

Cash Rate

Acronyms:
- RBA: Reserve Bank of Australia
Also known as: Interest Rates
Release Date: First Tuesday of the month (excluding January)

A cash rate is the interest rate charged by a central bank, like the Reserve Bank of Australia, to commercial banks for loans. The cash rate, also known as the bank rate or the base interest rate, is a type of interest rate that is set by the central bank. Although commercial banks are free to set their own borrowing rates, the rates they charge on loans and give on savings are typically extracted from the cash rate. This means that, depending on the state of the economy, central banks may use cash rates to promote or discourage consumer spending.

How this might affect the currency markets, and impact your trades

If a central bank lowers the cash rate, banks are likely to lower their lending and mortgage rates as well. This means that getting a loan will be simpler, and mortgage rates will become more favourable for buyers. Lower cash rates, on the other hand, can imply lower returns on savings as interest rate payments depreciate in value. If the central bank raises the cash rate, borrowing becomes more costly and mortgage prices rise, which benefits both banks and sellers. Any deposits kept in interest-bearing accounts, on the other hand, will see higher returns on interest payments in line with the rise in the cash rate.

CPI q/q

Acronyms:
- CPI: Consumer Price Index
Release Date: Quarterly, 25 days after quarter-end

The CPI, or inflation rate, is at the top of every central bank's agenda. Changes in inflation cause the central bank's monetary policy to change from easing to tightening, from dovish to hawkish language, and so on. This is due to the fact that every central bank in the world has an inflation mandate, whether it is the entire mandate or just a portion of it. A traditional mandate is to hold inflation below or close to 2%. There is a vigorous discussion these days about whether this inflation level is acceptable in the current environment, but we are sticking with it until something changes because it helps economies to develop at a normal rate.

How this might affect the currency markets, and impact your trades

Inflation is a significant factor affecting all currencies, including the AUD. In general, countries with high levels of inflation compared to other countries will see their currency depreciate, resulting in relatively equal prices of goods between countries. Furthermore, higher-than-expected inflation would cause the central bank to raise interest rates in order to control inflation.

Employment Change

Release Date: Monthly, 15 days after month-end

This study assesses the shift in job conditions in a country from the previous month. In layman's terms, it lists the cumulative number of people who lost or gained jobs in the previous month. A negative number indicates that more jobs were lost than gained in the previous month, while a positive number indicates that more jobs were generated than lost.

How this might affect the currency markets, and impact your trades

Jobs are closely monitored by markets because it is directly linked to consumer spending. People would naturally be more likely to spend if they were working, and vice versa. Therefore, the higher the level of employment, the more likely an economy is to strengthen and its corresponding currency to increase in value against other currencies; just as a lower level of employment would lead to a potentially weaker economy, and a weaker currency.

GDP q/q

Acronyms:
- GDP: Gross Domestic Product
Release Date: Quarterly, 65 days after quarter-end

The GDP q/q, released by the Australian Bureau of Statistics each quarter, is a measure of the overall change in the total value of all goods and services produced within the Australian economy compared to the previous quarter. Everything that happens within the economy, such as investments, government expenses, exports, consumption, services rendered, impacts this figure.

It is the broadest measure available for economic activity, and it is also the primary tool used to gauge the overall health of the economy within Australia.

How this might affect the currency markets, and impact your trades

The gross domestic product report, like every other piece of significant economic data, carries a lot of weight for currency traders. It shows development in a productive economy while signalling contraction in a declining one. As a result, currency traders will appear to pursue higher GDP or growth rates in the hope that interest rates will follow suit. When an economy expands at a reasonable pace, the gains flow down to the customer, raising the probability of investment and expansion. In exchange, higher spending leads to higher costs, which central banks aim to regulate by raising interest rates.

Monetary Policy Meeting Minutes

Acronyms:
- RBA: Reserve Bank of Australia
Release Date: 11 times a year, a fortnight after the Cash Rate Announcement

The board of directors of each central bank regulates its country's monetary policy as well as the short-term interest rate at which banks may borrow from one another. The central banks would raise interest rates to combat inflation and lower interest rates to promote credit and inject liquidity into the economy.

How this might affect the currency markets, and impact your trades

Following the news and reviewing central bank decisions should be top priorities for forex traders. Currency exchange rates begin to fluctuate as banks decide their region's monetary policy. As currency exchange rates fluctuate, traders will increase profits not only from interest accrual from carry trades, but also from market volatility. Thorough research analysis may assist a trader in avoiding surprise rate changes and properly reacting to them when they occur.

NAB Business Confidence

Acronyms:
- NAB: National Australia Bank
Release Date: Monthly, 11 days after month-end

The NAB Business Confidence Index is a key indicator of business confidence in Australia, published by the National Australia Bank (NAB) monthly. It is a part of the bank's market survey, which covers hundreds of Australian companies (excluding the farming industry) to determine the country's business conditions. The index is closely monitored in order to assess the overall health of the Australian economy.

Due to the nature of this report, the reading provided is centred around the 0 figure, with a reading above 0 suggesting that there is expansion within Australian businesses, and a reading below 0 suggesting that there may be contraction within Australian businesses.

How this might affect the currency markets, and impact your trades

The NAB Business Confidence report serves as a leading indicator of economic health within Australia. Businesses are quick to react to changes in market conditions, and so changes in their confidence or overall sentiment can be an early sign of changes within the economy. This change in sentiment can be used to predict potential changes to economic activities such as investment, spending, and hiring.

It is important to be aware of the NAB Business Confidence report as these economic changes have a great deal of impact when it comes to the overall strength and value of the Australian Dollar (AUD).

Parliamentary Elections

Also known as: General Election; Federal Election
Release Date: Every 3 years, snap-elections possible in between

The House of Representatives (usually also known as the Lower chamber) and the Senate are two separate Chambers. The Australian Parliament (also referred as the upper house). The 151-member Chamber of Representatives is elected in single members for a maximum term of three years (each approximately equal in voters). A system of preferential voting shall conduct elections (specifically, the alternative vote).

In the Senate, 76 senators have been elected through a preferential form of proportional representation through a single transferable vote system, with six Senators usually returning from each state constituting one constituency every three years and two Senators returning each territory constituting one constituency. In both territories, the electors elect senators on a basis of the term of the House of Representatives, for unfixed terms. State Senators serve fixed periods of six years, with the exception of double dissolution, half of which expire every three years in every State.

How this might affect the currency markets, and impact your trades

With expected movements across currency pairs, indices, and commodities, the run-up to an Australian election could present some decent trading opportunities across AUD pairs such as the AUD/USD, AUD/JPY, and GBP/AUD. Other common AUD crosses are likely to be influenced by the winner's upcoming foreign policies as well.

PPI q/q

Acronyms:
- PPI: Producer Price Index
Release Date: Quarterly, fourth Friday after quarter-end

PPI is a critical piece of economic data because it signals potential anticipated inflation. Traders track PPI in forex trading because of the positive relationship between inflation and interest rates, but essentially, traders are concerned about how changes in interest rates will impact currency pairs.

How this might affect the currency markets, and impact your trades

If the producer price index rises, interest rates will rise as well. As interest rates rise, saving money becomes more appealing because the reward (interest) is higher than before. Spending money becomes more expensive when investors lose out on the higher interest rate if they prefer to spend rather than save. As a consequence, rising PPI could lead to higher interest rates and a stronger currency.

Private Capital Expenditure q/q

Release Date: Quarterly, 55 days after quarter-end

Capital expenses (CapEx) are funds used by an organization to purchase, repair, and retain physical assets such as land, plants, structures, technology, or machinery. CapEx is also used to undertake new ventures or acquisitions by a corporation. Making capital expenditures on fixed assets may include fixing a roof, buying a piece of equipment, or constructing a new factory. This form of financial outlay is made by businesses to expand the scale of their operations or bring any economic value to the operation.

How this might affect the currency markets, and impact your trades

CapEx will tell you how much a firm invests to sustain or expand a business in current and new fixed assets. In other words, CapEx is any kind of expenditure which an enterprise capitalizes or displays as investment, rather than as expenditure, on its balance sheet. To capitalize on an asset, the business must distribute expenses over the life of the asset. Using this a trader is able to assess the current health of businesses within the economy, and if the respective currency is likely to strengthen or weaken as a result of this data.

RBA Gov ____ Speaks

Acronyms:
- RBA: Reserve Bank of Australia
Release Date: Undefined

The Governor of the Reserve Bank of Australia is the most senior position in the Reserve Bank of Australia, which is responsible for setting multiple forms of monetary policy, including where interest rates will be set.

How this might affect the currency markets, and impact your trades

The Governor of the RBA is involved in a number of talks all throughout the year, covering vast subject matters. It is important for traders to be aware of when the Governor of the RBA is speaking and what they are speaking on so that they are aware of any hints or clues to future financial and economic policy.

This will ensure that as a trader, you are up to date with what is happening with the AUD from a fundamental perspective and will be less likely to be caught off guard if there is a sudden shift in either monetary policy or sentiment.

RBA Monetary Policy Statement

Acronyms:
- RBA: Reserve Bank of Australia
Also known as: Statement on Monetary Policy
Release Date: Quarterly

The Reserve Bank of Australia (RBA) is responsible for a wide variety of functions, similar to those of other central banks around the world. It serves as the government's bank and the last resort lender. The RBA oversees issuing currency and, more generally, of monetary policy.

The RBA, headed up by the Governor of the RBA, is responsible for setting interest rates as well as other forms of monetary policy. The Monetary Policy Statement provides insight into Australia’s economic conditions and inflation, from the perspective of the bank.

How this might affect the currency markets, and impact your trades

Economic conditions and inflation are two of the most important factors that will influence future monetary policy including where interest rates will be set. Being aware of the current state of the Australian economy is paramount if you are looking to trade the Australian Dollar and related pairs, as a change in interest rates will have a significant impact on the markets.

RBA Rate Statement

Acronyms:
- RBA: Reserve Bank of Australia
Also known as: Interest Rate Statement
Release Date: First Tuesday of the month (excluding January)

The Bank of Australia Rate Statement is the primary tool used by the Bank to communicate monetary policy to investors. It includes the outcome of their interest rate decision as well as commentary on the economic factors that affected their decision.

How this might affect the currency markets, and impact your trades

Following the news and reviewing the bank decisions should be top priorities for forex traders. Currency exchange rates begin to fluctuate as banks decide their region's monetary policy. As currency exchange rates fluctuate, traders will increase profits not only from interest accrual from carry trades, but also from market volatility. Thorough research analysis may assist a trader in avoiding surprise rate changes and properly reacting to them when they occur.

Retail Sales m/m

Release Date: Monthly, 35 days after month-end

The Retail Sales report represents the change in the total value of sales at the retail level. As sales in the retail sector account for the majority of overall economic activity, it is a fantastic indicator of how the Australian economy is performing, and the current levels of consumer spending.

How this might affect the currency markets, and impact your trades

The percentage rises and declines often reflect how rapidly the economy is shrinking or expanding. Retail sales that are extremely high or extremely weak may also place upward or downward pressure on prices. As retail sales increase, upward pressure on prices can grow, particularly if sales figures continue to rise month after month. The same is true when sales are extremely low, placing downward pressure on prices as customers spend less, and again when sales are extremely low over an extended period of time.

Trade Balance

Also known as: International Trade in Goods and Services
Release Date: Monthly, 35 days after month-end

The Trade Balance is the net amount of a country's goods exports and imports, excluding all capital transactions, deposits, and other financial components. If the value of exports exceeds the value of imports, a country's Trade Balance is positive (meaning it has a surplus). If the value of imports exceeds the value of exports, a country's Trade Balance is negative, or it reports a deficit. The official term for net exports in the current account is the Trade Balance.

How this might affect the currency markets, and impact your trades

The country's currency is directly influenced by Trade Balance. If a country's exports outweigh its imports, we may assume that its goods are in high demand on the global market. This would have a direct positive effect on that country's currency as demand for its currency grows. This occurs because if there is a strong demand for the goods, prices rise, and the currency's value rises. In contrast, if a country's imports exceed its exports, it means that there is less global demand for the goods manufactured by that country. As a result, there would be less demand for its currency, resulting in a weakening of its value.

Trimmed Mean CPI q/q

Acronyms:
- CPI: Consumer Price Index
Release Date: Quarterly, 25 days after quarter-end

The Trimmed Mean Consumer Price Index (CPI) q/q of the Reserve Bank of Australia (RBA) represents the slightly weighted average price changes in goods and services in a given quarter compared to the previous year. The index calculation shall exclude 15% of market basket components with the lowest price changing values and 15% of those with the biggest ones. Consumer inflation is assessed on the basis of the remainder.

How this might affect the currency markets, and impact your trades

Inflation is a significant factor affecting all currencies, including the AUD. In general, countries with high levels of inflation compared to other countries will see their currency depreciate, resulting in relatively equal prices of goods between countries. Furthermore, higher-than-expected inflation would cause the central bank to raise interest rates in order to control inflation.

Unemployment Rate

Also known as: Jobless Rate
Release Date: Monthly, 15 days after month-end

The Unemployment Rate equals the total percentage of the Australian workforce that is currency unemployed and actively seeking forms of employment during the previous month.

How this might affect the currency markets, and impact your trades

Unemployment is typically seen as a lagging economic indicator; however, it still serves as an important factor for traders as a lack of employment means less income, less income means less spending, and less spending means less economic activity could be expected in the short term.

Second to this is the fact that unemployment is a large factor when it comes to policymaking decisions by both government and the Reserve Bank of Australia.

Traders should be aware of the Unemployment figures of Australia if they are looking to trade AUD pairs as higher unemployment could indicate a weaker currency.

Wage Price Index q/q

Also known as: Wage Cost Index; Labour Price Index
Release Date: Quarterly, 45 days after quarter-end

The spiral of wage prices is a macro-economic theory used to describe why wages, price rises, and inflation are linked to each other. The spiral in wage prices means that rising wages raise disposable incomes and increase demand for goods. Higher prices boost demand for higher wages, leading to higher cost of production, and higher prices causing a conceptual spiral.

The effect of supply and demand on aggregate prices results in a wage price spiral. Many who earn more than their living expenses choose a mixture of savings and consumer expenses. With incomes increasing, the tendency of a customer is saving and consuming as well.

How this might affect the currency markets, and impact your trades

If an economy's minimum wage were to rise, for instance, the customer would buy more products in the economy, thereby increasing demand. The increase in aggregate demand and the increasing payload lead to higher prices of goods and services by companies. While wages are higher, price growth leads to higher wages demanded. If higher salaries are paid, a loop in which prices subsequently rise will happen again, until the salary levels are not supported.

This ongoing loop has a notable effect on the value of a currency and so it is imperative that, as a trader, you are staying in the loop. Any changes in wage prices, the price of goods and services, or inflation could lead to volatility within a currency and its corresponding currency pairs.

High Impact Forex Factory News Events that Affect The New Zealand Dollar (NZD)

Your Title Goes Here
Annual Budget Release

Release Date: Annually

Annual budgets are deemed to be balanced when estimated expenses are equal to projected revenues. It is in debt if its expenses surpass its revenues, and it is in surplus if its revenues exceed its expenses.

The annual budget details the estimated revenue and expenditures of the New Zealand Government for the coming year. The method of developing an annual budget entails weighing the sources of revenue such as Personal Income Taxes, Company Taxes, Goods and Services Taxes, Investment Income, etc, against public expenditures such as Social Security and Welfare, Health, Education, Defence, Public Debt Interest, etc.

How this might affect the currency markets, and impact your trades

The Budget influences the economy, interest rates, and financial markets. The fiscal deficit is affected by how the finance minister spends and invests revenue. The size of the deficit and the means of funding it influences the economy's money supply and interest rates.

In the same way, an increase in indirect taxes will reduce demand. This is because indirect taxes are often partly or entirely passed on to customers in the form of higher prices. Higher prices mean a decrease in demand, which in turn reduces company profit margins, slowing economic production and growth, resulting in a weaker currency.

CPI q/q

Acronyms:
- CPI: Consumer Price Index
Release Date: Quarterly, 18 days after quarter-end

The CPI, or inflation rate, is at the top of every central bank's agenda. Changes in inflation cause the central bank's monetary policy to change from easing to tightening, from dovish to hawkish language, and so on. This is due to the fact that every central bank in the world has an inflation mandate, whether it is the entire mandate or just a portion of it. A traditional mandate is to hold inflation below or close to 2%. There is a vigorous discussion these days about whether this inflation level is acceptable in the current environment, but we are sticking with it until something changes because it helps economies to develop at a normal rate.

How this might affect the currency markets, and impact your trades

Inflation is a significant factor affecting all currencies, including the NZD. In general, countries with high levels of inflation compared to other countries will see their currency depreciate, resulting in relatively equal prices of goods between countries. Furthermore, higher-than-expected inflation would cause the central bank to raise interest rates in order to control inflation.

Employment Change q/q

Release Date: Quarterly, 35 days after quarter-end

This study assesses the shift in job conditions in a country from the previous month. In layman's terms, it lists the cumulative number of people who lost or gained jobs in the previous month. A negative number indicates that more jobs were lost than gained in the previous month, while a positive number indicates that more jobs were generated than lost.

How this might affect the currency markets, and impact your trades

Jobs are closely monitored by markets because it is directly linked to consumer spending. People would naturally be more likely to spend if they were working, and vice versa. Therefore, the higher the level of employment, the more likely an economy is to strengthen and its corresponding currency to increase in value against other currencies; just as a lower level of employment would lead to a potentially weaker economy, and a weaker currency.

Final ANZ Business Confidence

Release Date: Monthly, around the end of the month (excluding January)

The Australia and New Zealand Banking Group Limited (ANZ) Market Confidence Index tests New Zealand's current business conditions. It aids in the analysis of the short-term economic situation. An increasing trend suggests a rise in business investment, which can result in higher production levels.

How this might affect the currency markets, and impact your trades

A heightened production level would lead to economic growth and increase the value of corresponding currencies. Conversely, a decreasing trend can be an indicator of economic downturn, leading to a potential devaluation of the correlating currencies.

It is important to be aware of this report so you can determine the current sentiment of business within Australia and New Zealand to help you determine their overall strength against other currencies.

GDP q/q

Acronyms:
- GDP: Gross Domestic Product
Release Date: Quarterly, 75 days after quarter-end

The GDP q/q, released by Statistics New Zealand each quarter, is a measure of the overall change in the total value of all goods and services produced within the New Zealand economy compared to the previous quarter. Everything that happens within the economy, such as investments, government expenses, exports, consumption, services rendered, impacts this figure.

It is the broadest measure available for economic activity, and it is also the primary tool used to gauge the overall health of the economy within New Zealand.

How this might affect the currency markets, and impact your trades

The gross domestic product report, like every other piece of significant economic data, carries a lot of weight for currency traders. It shows development in a productive economy while signalling contraction in a declining one. As a result, currency traders will appear to pursue higher GDP or growth rates in the hope that interest rates will follow suit. When an economy expands at a reasonable pace, the gains flow down to the customer, raising the probability of investment and expansion. In exchange, higher spending leads to higher costs, which central banks aim to regulate by raising interest rates.

GDT Price Index

Acronyms:
- GDT: Global Dairy Trade
Release Date: Twice Monthly

The GDT Price Index measures the change in the average price of dairy products that are sold at auction. The figure is presented as a percentage comparing the weighted-average price of the 9 dairy products that are sold at auction, with the previous auction.

How this might affect the currency markets, and impact your trades

New Zealand is a big exporter of commodities, particularly dairy-based products, meat, wood, fish, and machinery.

Being aware of the exportation of dairy products and their relative price fluctuations will help you to determine the strength of New Zealand’s economy from an export-perspective as every item bought abroad is new money entering the New Zealand economy.

Inflation Expectations q/q

Release Date: Quarterly, 50 days before quarter-end

The Reserve Bank of New Zealand's Inflation Expectations calculate business managers' expectations of annual CPI in two years. An increase in expectations is considered inflationary since it may foreshadow a rise in interest rates.

How this might affect the currency markets, and impact your trades

Because of the way inflation affects interest rates, when an economic number reflective of inflationary trends that points to a rise in inflation is issued, it is typically bullish for that country's currency. This impact occurs because interest rates are likely to be raised in order to combat the inflationary trend. In contrast, if the number shows a drop in inflation, the currency will appear to fall because interest rates will be adjusted lower as a result.

NZIER Business Confidence

Acronyms:
- NZIER: New Zealand Institute of Economic Research
Also known as: Survey of Business Opinion
Release Date: Quarterly, First or Second Tuesday after quarter-end

The NZIER Business Confidence report is a key indicator of business confidence in New Zealand, published by the New Zealand Institute of Economic Research (NZIER) quarterly. The figure is determined through analysing surveys provided to around 2,500 businesses which asks recipients to rate their 6-month outlook on the economy. The full report is only available to members of the NZIER.

Due to the nature of this report, the reading provided is centred around the 0 figure, with a reading above 0 suggesting that there is expansion within New Zealand businesses, and a reading below 0 suggesting that there may be contraction within New Zealand businesses.

How this might affect the currency markets, and impact your trades

The NZIER Business Confidence report serves as a leading indicator of economic health within New Zealand. Businesses are quick to react to changes in market conditions, and so changes in their confidence or overall sentiment can be an early sign of changes within the economy. This change in sentiment can be used to predict potential changes to economic activities such as investment, spending, and hiring.

It is important to be aware of the NZIER Business Confidence report as these economic changes have a great deal of impact when it comes to the overall strength and value of the New Zealand Dollar (NZD).

Official Cash Rate

Acronyms:
- RBNZ: Reserve Bank of New Zealand
- OCR: Official Cash Rate

Also known as: Interest Rates; OCR
Release Date: Scheduled 7 times per year

The Official Cash Rate is the interest rate at which banking institutions lend their balances that are held at the Reserve Bank of New Zealand to other banking institutions overnight. The decision will often already be priced into the market and so this particular event is often overshadowed by the RBNZ Rate Statement which tend to focus on future changes to the interest rate.

How this might affect the currency markets, and impact your trades

As a trader, any kind of change in interest rates, even in the short term, are a dominant factor when it comes to valuing a currency or determining the strength of a currency. It is imperative that you are up to date not just with Rate Statements, but with other economic indicators such as employment, exports, construction, and many others to be able to predict how interest rates may change in the future. This way you are not tripped up by any surprise changes to interest rates either in the short term or long term.

Parliamentary Elections

Release Date: Every 3 years, snap-elections possible in between

The House of Representatives in New Zealand is a single-house legislature with 120 members, though the number will increase due to (generally) one or two overhang seats, depending on the result of the electoral process. The New Zealand Parliament has a three-year term.

How this might affect the currency markets, and impact your trades

With expected movements across currency pairs, indices, and commodities, the run-up to the election could present trading opportunities. AUD/NZD, NZD/USD, EUR/NZD, GBP/NZD, and other common NZD crosses are likely to be influenced by the winner's upcoming foreign policies.

PPI Input q/q

Acronyms:
- PPI: Producer Price Index
Release Date: Quarterly, 50 days after quarter-end

PPI is a critical piece of economic data because it signals potential anticipated inflation. Traders track PPI in forex trading because of the positive relationship between inflation and interest rates, but essentially, traders are concerned about how changes in interest rates will impact currency pairs.

How this might affect the currency markets, and impact your trades

If the consumer price index rises, interest rates will rise as well. As interest rates rise, saving money becomes more appealing because the reward (interest) is higher than before. Spending money becomes more expensive when investors lose out on the higher interest rate if they prefer to spend rather than save. As a consequence, rising PPI could lead to higher interest rates and a stronger currency.

RBNZ Financial Stability Report

Release Date: Twice per year

The RBNZ Financial Stability Report assesses potential vulnerabilities within the New Zealand economy such as debt levels and exposure to global developments. It also analyses various economic conditions such as inflation and growth. It then serves to find potential solutions and outlines any ongoing developments that are being undertaken in order to help protect and stabilise the economy of New Zealand.

How this might affect the currency markets, and impact your trades

This report encompasses a lot of economic data, it is a gold-mine of information when it comes to the NZD and the New Zealand economy overall. It provides a magnificent insight into how the Reserve Bank of New Zealand views inflation, growth, and a number of other conditions that affect the New Zealand economy, which will undoubtedly influence any future interest rate decisions.

RBNZ Gov ____ Speaks

Acronyms:
- RBNZ: Reserve Bank of New Zealand
Release Date: Undefined

The Governor of the Reserve Bank of New Zealand is the most senior position in the Reserve Bank of New Zealand, which is responsible for setting multiple forms of monetary policy, including where interest rates will be set.

How this might affect the currency markets, and impact your trades

The Governor of the RBNZ is involved in a number of talks all throughout the year, covering vast subject matters. It is important for traders to be aware of when the Governor of the RBNZ is speaking and what they are speaking on so that they are aware of any hints or clues to future financial and economic policy.

This will ensure that as a trader, you are up to date with what is happening with the NZD from a fundamental perspective and will be less likely to be caught off guard if there is a sudden shift in either monetary policy or sentiment.

RBNZ Monetary Policy Statement

Acronyms:
- RBNZ: Reserve Bank of New Zealand
Release Date: Quarterly

The Reserve Bank of New Zealand (RBNZ) is responsible for a wide variety of functions, similar to those of other central banks around the world. It serves as the government's bank and the last resort lender. The RBNZ is in charge of issuing currency and, more generally, of monetary policy.

The RBNZ, headed up by the Governor of the RBNZ, is responsible for setting interest rates as well as other forms of monetary policy. The Monetary Policy Statement provides insight into New Zealand’s economic conditions and inflation, from the perspective of the bank.

How this might affect the currency markets, and impact your trades

Economic conditions and inflation are two of the most important factors that will influence future monetary policy including where interest rates will be set. Being aware of the current state of the New Zealand economy is paramount if you are looking to trade the New Zealand Dollar and related pairs, as a change in interest rates will have a significant impact on the markets.

RBNZ Press Conference

Acronyms:
- RBNZ: Reserve Bank of New Zealand
Also known as: Monetary Policy Statement Media Conference
Release Date: Quarterly, at every other Cash Rate announcement

The RBNZ Press Conference only lasts 30 minutes yet can have a significant impact on the markets. It is comprised of two parts: First, a prepared statement that is read by the Governor of the Reserve Bank of New Zealand. Second, a question-and-answer session between the Governor and the Press.

The Press Conference is one of the primary means that the RNBZ uses in order to communicate its various monetary policies to both investors and the general public at large.

How this might affect the currency markets, and impact your trades

The Q&A session is the most likely section of the conference to have an impact on the markets as it can include unscripted answers to certain questions, opening up the markets to speculation and volatility.

Second to this is the information that may be revealed detailing both the current state of the New Zealand economy, and any hints around future monetary policy, such as any potential changes in interest rates in the future.

As a trader, it is a valuable source of information when trying to ascertain the overall strength of the NZD.

RBNZ Rate Statement

Acronyms:
- RBNZ: Reserve Bank of New Zealand
Also known as: Policy Assessment; Interest Rate Statement
Release Date: Scheduled 7 times per year

The Rate Statement is the primary tool used by the Bank of New Zealand to communicate its monetary policies to investors. It includes the outcome of their interest rate decision as well as commentary on the economic factors that affected their decision.

How this might affect the currency markets, and impact your trades

The Rate Statement will include a heap of information pertaining to the current economic situation within New Zealand and is an invaluable insight into the sentiment within New Zealand’s banking sector.

It is imperative that, as a trader, you are aware of why members of the RBNZ have made any changes to monetary policies or if they may make changes to monetary policy in the future.

Retail Sales q/q

Release Date: Quarterly, 45 days after quarter-end

The Retail Sales report represents the change in the total value of sales at the retail level adjusted for inflation. As sales in the retail sector account for the majority of overall economic activity, it is a fantastic indicator of how the New Zealand economy is performing, and the current levels of consumer spending.

How this might affect the currency markets, and impact your trades

The percentage rises and declines often reflect how rapidly the economy is shrinking or expanding. Retail sales that are extremely high or extremely weak may also place upward or downward pressure on prices. As retail sales increase, upward pressure on prices can grow, particularly if sales figures continue to rise month after month. The same is true when sales are extremely low, placing downward pressure on prices as customers spend less, and again when sales are extremely low over an extended period of time.

Trade Balance

Also known as: Overseas Merchandise Trade
Release Date: Monthly, 26 days after month-end

The Trade Balance is the net amount of a country's goods exports and imports, excluding all capital transactions, deposits, and other financial components. If the value of exports exceeds the value of imports, a country's Trade Balance is positive (meaning it has a surplus). If the value of imports exceeds the value of exports, a country's Trade Balance is negative, or it reports a deficit. The official term for net exports in the current account is the Trade Balance.

How this might affect the currency markets, and impact your trades

The country's currency is directly influenced by Trade Balance. If a country's exports outweigh its imports, we may assume that its goods are in high demand on the global market. This would have a direct positive effect on that country's currency as demand for its currency grows. This occurs because if there is a strong demand for the goods, prices rise, and the currency's value rises. In contrast, if a country's imports exceed its exports, it means that there is less global demand for the goods manufactured by that country. As a result, there would be less demand for its currency, resulting in a weakening of its value.

Unemployment Rate

Also known as: Jobless Rate
Release Date: Quarterly, 35 days after quarter-end

The Unemployment Rate equals the total percentage of the New Zealand workforce that is currency unemployed and actively seeking forms of employment during the previous quarter.

How this might affect the currency markets, and impact your trades

Unemployment is typically seen as a lagging economic indicator; however, it still serves as an important factor for traders as a lack of employment means less income, less income means less spending, and less spending means less economic activity could be expected in the short term.

Second to this is the fact that unemployment is a large factor when it comes to policymaking decisions by both government and the Reserve Bank of New Zealand.

Traders should be aware of the Unemployment figures of New Zealand if they are looking to trade NZD pairs as higher unemployment could indicate a weaker currency.

High Impact Forex Factory News Events that Affect The Canadian Dollar (CAD)

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BOC Business Outlook Survey

Acronyms:
- BOC: Bank of Canada
Also known as: Senior Loan Officer Survey
Release Date: Quarterly

The Bank of Canada (BoC) publishes a quarterly Business Outlook Survey based on a compilation of interviews conducted by the Bank's regional offices with the senior management of approximately 100 companies chosen based on the composition of Canada's GDP. The survey's aim is to collect these businesses' perspectives on topics of interest to the central bank (such as demand and capacity utilization) as well as their forward-looking views on economic activity. Since the Bank of Canada is responsible for holding inflation within a specific target range, information on price pressures is closely monitored.

How this might affect the currency markets, and impact your trades

If the survey shows an overheating economy or inflationary pressures, the Bank of Canada will be more likely to increase interest rates to slow the economy's speed. In contrast, if the survey reveals economic difficulties or recessionary conditions, the Bank of Canada can decide to lower interest rates in order to stimulate investment.

BOC Gov ____ Speaks

Acronyms:
- BOC: Bank of Canada
Release Date: Undefined

The Governor of the Bank of Canada is the most senior position in the Bank of Canada, which is responsible for setting multiple forms of monetary policy, including where interest rates will be set.

How this might affect the currency markets, and impact your trades

The Governor of the BoC is involved in a number of talks all throughout the year, covering vast subject matters. It is important for traders to be aware of when the Governor of the BoC is speaking and what they are speaking on so that they are aware of any hints or clues to future financial and economic policy.

This will ensure that as a trader, you are up to date with what is happening with the CAD from a fundamental perspective and will be less likely to be caught off guard if there is a sudden shift in either monetary policy or sentiment.

BOC Monetary Policy Report

Acronyms:
- BOC: Bank of Canada
Release Date: Quarterly

The aim of monetary policy is to maintain the purchasing power of money by keeping inflation low, steady, and predictable. Canada's monetary policy system is made up of two main components that function in tandem: the inflation target and the exchange rate flexibility.

How this might affect the currency markets, and impact your trades

Traders and investors are especially concerned about the effect of monetary policy. Traders will try to forecast which direction monetary policy will take ahead of each meeting. Unexpected interest rate hike announcements generally cause the CAD to rise against its rivals, while unexpected rate cuts may cause the CAD to fall.

BOC Press Conference

Acronyms:
- BOC: Bank of Canada
Release Date: Quarterly, after the release of the BOC Monetary Policy Report

Following the publication of the BOC Monetary Policy Report, the Governor and Senior Deputy Governor hold a press conference. The press conference is divided into two parts: first, a prepared statement is read aloud, and then the conference is open to press questions.

The central bank has set an inflation target of 1% to 3%, with the aim of holding it close to 2%. Since 1998, it has done a decent job of holding inflation within that range. The BOC's governing council, which consists of the bank's governor, the senior deputy governor, and four deputy governors, makes monetary policy decisions by majority vote. The executive board, composed of the governing council and the chief operating officer, develops the bank's strategy.

How this might affect the currency markets, and impact your trades

Because of the way inflation affects interest rates, when an economic number reflective of inflationary trends that points to a rise in inflation is issued, it is typically bullish for that country's currency. This impact occurs because interest rates are likely to be raised in order to combat the inflationary trend.

In contrast, if the number shows a drop in inflation, the currency will appear to fall because interest rates will be adjusted lower as a result.

BOC Rate Statement

Acronyms:
- BOC: Bank of Canada
Also known as: Interest Rate Statement
Release Date: Scheduled 8 times per year

The Bank of Canada Rate Statement is the primary tool used by the Bank to communicate monetary policy to investors. It includes the outcome of their interest rate decision as well as commentary on the economic factors that affected their decision.

How this might affect the currency markets, and impact your trades

Following the news and reviewing the bank decisions should be top priorities for forex traders. Currency exchange rates begin to fluctuate as banks decide their region's monetary policy. As currency exchange rates fluctuate, traders will increase profits not only from interest accrual from carry trades, but also from market volatility. Thorough research analysis may assist a trader in avoiding surprise rate changes and properly reacting to them when they occur.

Building Permits m/m

Release Date: Monthly, 35 days after month-end

This measure represents the expansion of Canada's construction industry. The reports include the average value of residential and non-residential buildings, as well as the value and number of building permits issued. It usually has an impact on other figures that relate to the overall economy, such as jobs and durable goods.

How this might affect the currency markets, and impact your trades

Economists and investors alike keep a close eye on the monthly building permit survey. Since all factors associated with building construction are essential economic activities (for example, funding and employment), the building permit report will provide a significant indication of the state of the economy in the near future.

The types of building permits issued may be indicators of economic development or recession in specific sectors of the economy. An increase in commercial building permits, for example, sometimes means that businesses are expanding or that new businesses are being developed. If the number of building permits for new warehouses increases, it could indicate that trade would expand in the coming years.

Core CPI m/m

Acronyms:
- CPI: Consumer Price Index
- PCE: Personal Consumption Expenses Index

Also known as: CPI Ex Volatile Items
Release Date: Monthly, 20 days after month-end

Core CPI is similar to the typical CPI except for one important detail.

Core CPI does not include 8 of the most volatile items: Fruits, Vegetables, Tobacco products, Natural Gas, Fuel Oil, Gasoline, Mortgage Interest, and Intercity Transportation. These 8 factors would typically account for a large proportion of the CPI report. The reason these are not included in the Core CPI report is because they are naturally volatile goods and services. Removing these 8 factors gives a more accurate view of how the Consumer Price Index is fluctuating and what the currency’s level of inflation would be. The BoC and other institutions pay much more attention to the Core CPI report than they do the typical CPI report for this very reason.

How this might affect the currency markets, and impact your trades

Having this better view of inflation gives traders an insight into how interest rates may be altered in order to bring inflation under control as per the BoC’s inflation containment mandate.

Interest rate changes can have a substantial impact on a currency and so keeping informed on the Core CPI each month will ensure you are in a good position as a trader to take advantage of potential interest rate announcements.

Core Retail Sales m/m

Also known as: Retail Sales Ex Autos
Release Date: Monthly, 50 days after month-end

The core retail sales figure is based on data from Statistics Canada but excludes consumer spending on automobiles because automobile account for around 20% of retail sales, and their prices are often volatile leading to potential distortion in the overall figure. The statistic reflects the monthly percentage increase or decrease.

How this might affect the currency markets, and impact your trades

The percentage increase or decrease from month to month indicates whether the economy is shrinking or expanding, and how quickly. Retail sales that are extremely high or extremely weak may place upward or downward pressure on prices. If retail sales continue to increase, upward pressure on prices will eventually take hold, especially if the figures continue to rise month after month.

CPI m/m

Acronyms:
- CPI: Consumer Price Index
Also known as: All Items CPI
Release Date: Monthly, 20 days after month-end

The CPI, or inflation rate, is at the top of every central bank's agenda. Changes in inflation cause the central bank's monetary policy to change from easing to tightening, from dovish to hawkish language, and so on. This is due to the fact that every central bank in the world has an inflation mandate, whether it is the entire mandate or just a portion of it. A traditional mandate is to hold inflation below or close to 2%. There is a vigorous discussion these days about whether this inflation level is acceptable in the current environment, but we're sticking with it until something changes because it helps economies to develop at a normal rate.

How this might affect the currency markets, and impact your trades

Inflation is a significant factor affecting all currencies, including the euro. In general, countries with high levels of inflation compared to other countries will see their currency depreciate, resulting in relatively equal prices of goods between countries. Furthermore, higher-than-expected inflation would cause the central bank to raise interest rates in order to control inflation.

Employment Change

Release Date: Monthly, 8 days after month-end

This study assesses the shift in job conditions in a country from the previous month. In layman's terms, it lists the cumulative number of people who lost or gained jobs in the previous month. A negative number indicates that more jobs were lost than gained in the previous month, while a positive number indicates that more jobs were generated than lost.

How this might affect the currency markets, and impact your trades

Jobs are closely monitored by markets because it is directly linked to consumer spending. People would naturally be more likely to spend if they were working, and vice versa. Therefore, the higher the level of employment, the more likely an economy is to strengthen and its corresponding currency to increase in value against other currencies; just as a lower level of employment would lead to a potentially weaker economy, and a weaker currency.

GDP m/m

Acronyms:
- GDP: Gross Domestic Product
Release Date: Monthly, 60 days after month-end

The GDP m/m, released by Statistics Canada each month, is a measure of the overall change in the total value of all goods and services produced within the Canadian economy compared to the previous month. Everything that happens within the economy, such as investments, government expenses, exports, consumption, services rendered, impacts this figure.

It is the broadest measure available for economic activity, and it is also the primary tool used to gauge the overall health of the economy within Canada.

How this might affect the currency markets, and impact your trades

The gross domestic product report, like every other piece of significant economic data, carries a lot of weight for currency traders. It shows development in a productive economy while signalling contraction in a declining one. As a result, currency traders will appear to pursue higher GDP or growth rates in the hope that interest rates will follow suit. When an economy expands at a reasonable pace, the gains flow down to the customer, raising the probability of investment and expansion. In exchange, higher spending leads to higher costs, which central banks aim to regulate by raising interest rates.

Ivey PMI

Acronyms:
- PMI: Purchasing Managers’ Index
Release Date: Monthly, 5 days after month-end

The Ivey PMI tracks monthly changes in economic activity as reported by a panel of purchasing managers from across Canada. It is focused on purchasing managers' answers to a single question: "Was your transaction last month in dollars higher, the same, or lower than the previous month?" A reading below 50 indicates a decrease, while a reading above 50 indicates an increase. Members of the panel reflect improvements in their organization's operation in five different categories: Purchases, jobs, inventories, supplier deliveries, and prices are all factors to consider.

How this might affect the currency markets, and impact your trades

Trading USD/CAD with this report is fairly easy. The USD/CAD usually rallies in response to better-than-expected results, and it is not uncommon for the Canadian currency to fall in response to sub-50.0 readings or worse-than-expected results. Furthermore, USD/CAD has a tendency to bounce off the nearest horizontal level immediately after the report is released, and then continue in the same direction for the next 30 minutes or so. The trend (bearish or bullish) can last up to 50 pips.

Manufacturing Sales m/m

Also known as: Manufacturing Shipments; Factory Sales
Release Date: Monthly, 45 days after month-end

The Monthly Survey of Manufacturers has been publishing industry-level estimates for price deflated sales of manufactured products since March 2017. In addition, the survey includes information on inventories, issued orders, and pending production orders. The survey sample includes all industrial sectors in Canada, this includes tobacco and beverage production, textile and leather production, food production, chemicals, mineral processing, electrical goods, the automotive industry, and so on.

How this might affect the currency markets, and impact your trades

The Manufacturing Sales report is a leading indicator of economic health. Manufacturing is quick to react to any fluctuations within the business cycle and is therefore inherently correlated to consumer conditions such as employment, spending, and earnings.

Due to the nature of this report, it’s important that traders stay informed on Manufacturing Sales in order to determine the current health of the economy, and how that might change in the future if there are vast swings within the report compared to previous releases.

Overnight Rate

Acronyms:
- BOC: Bank of Canada
Also known as: Interest Rates; Key Interest Rate
Release Date: Scheduled 8 times per year

The sum of money a bank has fluctuates on a regular basis depending on its lending activities and the withdrawal and deposit operation of its customers. At the end of the business day, a bank can have a cash shortage or surplus. Banks that have a surplus often lend money overnight to banks that have a shortage of funds in order to meet their reserve requirements. The conditions ensure the banking system's stability and liquidity.

The overnight rate is a convenient way for banks to obtain short-term funding from central bank depositories. Since the overnight rate is influenced by a country's central bank, it can be used to forecast the movement of short-term interest rates for customers in the broader economy. Borrowing money becomes more costly as the overnight rate rises.

How this might affect the currency markets, and impact your trades

As a trader, any kind of change in interest rates, even in the short term, are a dominant factor when it comes to valuing a currency or determining the strength of a currency. It is imperative that you are up to date not just with Rate Statements, but with other economic indicators such as employment, exports, construction, and many others to be able to predict how interest rates may change in the future. This way you are not tripped up by any surprise changes to interest rates either in the short term or long term.

Trade Balance

Also known as: International Merchandise Trade
Release Date: Monthly, 35 days after month-end

The Trade Balance is the net amount of a country's goods exports and imports, excluding all capital transactions, deposits, and other financial components. If the value of exports exceeds the value of imports, a country's Trade Balance is positive (meaning it has a surplus). If the value of imports exceeds the value of exports, a country's Trade Balance is negative, or it reports a deficit. The official term for net exports in the current account is the Trade Balance.

How this might affect the currency markets, and impact your trades

The country's currency is directly influenced by Trade Balance. If a country's exports outweigh its imports, we may assume that its goods are in high demand on the global market. This would have a direct positive effect on that country's currency as demand for its currency grows. This occurs because if there is a strong demand for the goods, prices rise, and the currency's value rises. In contrast, if a country's imports exceed its exports, it means that there is less global demand for the goods manufactured by that country. As a result, there would be less demand for its currency, resulting in a weakening of its value.

Unemployment Rate

Also known as: Jobless Rate
Release Date: Monthly, 8 days after month-end

The Unemployment Rate equals the total percentage of the Canadian workforce that is currency unemployed and actively seeking forms of employment during the previous month.

How this might affect the currency markets, and impact your trades

Unemployment is typically seen as a lagging economic indicator; however, it still serves as an important factor for traders as a lack of employment means less income, less income means less spending, and less spending means less economic activity could be expected in the short term.

Second to this is the fact that unemployment is a large factor when it comes to policymaking decisions by both government and the Bank of Canada.

Traders should be aware of the Unemployment figures of Canada if they are looking to trade CAD pairs as higher unemployment could indicate a weaker currency.

Wholesale Sales m/m

Also known as: Wholesale Trade
Release Date: Monthly, 45 days after month-end

Wholesale trade is an economic metric that calculates the value of all merchant wholesalers' revenue and inventories in Canada. One aspect of company sales and inventories is wholesale trading. Wholesale trade only includes companies that sell to governments, institutions, and other businesses.

Though wholesale trading is distinct from consumer sales transactions, wholesalers are an important part of the supply chain that feeds consumer trade. Wholesalers' relationships with their clients can be long-standing, with new orders and follow-ups coming in when those retailers and suppliers need more products.

However, the wholesale sales calculation does not include data on petroleum, petroleum products wholesales, or data on oilseed and grain.

How this might affect the currency markets, and impact your trades

Since wholesalers' sales and inventory figures can be a leading indicator of market patterns, wholesale-trade data provides investors with a more in-depth look at the consumer economy. Investors can predict whether demand will increase or decrease in the future by examining the sales-to-inventory ratio.

If inventories rise more slowly than sales, manufacturers will need to manufacture more product to avoid shortages. If, on the other hand, revenue growth is slower than inventory growth, there will be an excess of supply, and production will slow in the coming months.

High Impact Forex Factory News Events that Affect The Swiss Franc (CHF)

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CPI m/m

Acronyms:
- CPI: Consumer Price Index
Release Date: Monthly, 3 days after month-end

The CPI, or inflation rate, is at the top of every central bank's agenda. Changes in inflation cause the central bank's monetary policy to change from easing to tightening, from dovish to hawkish language, and so on. This is due to the fact that every central bank in the world has an inflation mandate, whether it is the entire mandate or just a portion of it. A traditional mandate is to hold inflation below or close to 2%. There is a vigorous discussion these days about whether this inflation level is acceptable in the current environment, but we are sticking with it until something changes because it helps economies to develop at a normal rate.

How this might affect the currency markets, and impact your trades

Inflation is a significant factor affecting all currencies, including the Swiss Franc. In general, countries with high levels of inflation compared to other countries will see their currency depreciate, resulting in relatively equal prices of goods between countries. Furthermore, higher-than-expected inflation would cause the central bank to raise interest rates in order to control inflation.

Foreign Currency Reserves

Acronyms:
- SNB: Swiss National Bank
Release Date: Monthly, on the 5th business day after month-end

Banknotes, deposits, bonds, treasury bills, and other government securities are examples of foreign exchange reserves. These assets are kept for a variety of reasons, the most important of which is to ensure that a central government entity has contingency funds if their national currency quickly devalues or becomes completely insolvent.

It is standard practice for central banks around the world to keep a large number of reserves in foreign exchange. Since the US dollar is the most traded currency in the world, the majority of these reserves are kept in US dollars. It is not unusual for foreign exchange reserves to include the Great British Pound (GBP), Euro (EUR), Chinese Yuan (CNY), or Japanese Yen (JPY).

How this might affect the currency markets, and impact your trades

Foreign Exchange Reserve figures are essential to traders and investors because they monitor demand and supply in the Forex market.

As an example, assume the United States is pouring large sums of money into Indian-based commodities, shares, and so on. The Indian market will be extremely popular. In turn, the USD/INR exchange rate will see a decline. In other words, the value of the USD would fall while the value of the INR would increase. The central bank will then intervene and buy back the dollar from them, raising their Forex reserve value and keeping the USD/INR at the original price. As a result, traders and investors will profit after learning that central banks will buy back the USD.

The SNB’s Foreign Currency Reserves can provide an insight into the SNB’s operations within the currency market, including how active they are in defending the exchange rate of the Swiss Franc (CHF) against other currencies, especially its closest neighbouring currency, the Euro (EUR)

Libor Rate

Acronyms:
- Libor: London Interbank Offered Rate
- SNB: Swiss National Bank

Also known as: Interest Rates; Libor; 3-month Rate
Release Date: Quarterly

Lenders, such as banks and other financial institutions, use LIBOR as a benchmark reference to determine interest rates on different debt instruments. It is also used in various countries as a benchmark rate for mortgages, corporate loans, government bonds, credit cards, and student loans. LIBOR is also used for other financial items such as derivatives such as interest rate swaps and currency swaps, in addition to debt instruments.

How this might affect the currency markets, and impact your trades

LIBOR is used to reference an estimated US$350 trillion in outstanding business in various maturities. It is also often used to create expectations for potential central bank rates as well as to assess the health of the global banking system. Because of its global importance and scope, downward pressure on LIBOR during a financial crisis, when banks attempt to appear healthier, has the potential to jeopardise the entire global financial system.

Retail Sales y/y

Also known as: Real Retail Sales
Release Date: Monthly, 30 days after month-end

The Retail Sales report represents the change in the total value of sales at the retail level adjusted for inflation and excluding automobiles and gas stations. As sales in the retail sector account for the majority of overall economic activity, it is a fantastic indicator of how the Swiss economy is performing, and the current levels of consumer spending.

How this might affect the currency markets, and impact your trades

The percentage rises and declines often reflect how rapidly the economy is shrinking or expanding. Retail sales that are extremely high or extremely weak may also place upward or downward pressure on prices. As retail sales increase, upward pressure on prices can grow, particularly if sales figures continue to rise month after month. The same is true when sales are extremely low, placing downward pressure on prices as customers spend less, and again when sales are extremely low over an extended period of time.

SNB Chairman ____ Speaks

Acronyms:
- SNB: Swiss National Bank
Release Date: Undefined

The Chairman of the Swiss National Bank is the most senior position in the Swiss National Bank, which is responsible for setting multiple forms of monetary policy, including where interest rates will be set.

How this might affect the currency markets, and impact your trades

The Chairman of the SNB is involved in a number of talks all throughout the year, covering vast subject matters. It is important for traders to be aware of when the Chairman of the SNB is speaking and what they are speaking on so that they are aware of any hints or clues to future financial and economic policy.

This will ensure that as a trader, you are up to date with what is happening with the CHF from a fundamental perspective and will be less likely to be caught off guard if there is a sudden shift in either monetary policy or sentiment.

SNB Monetary Policy Assessment

Acronyms:
- SNB: Swiss National Bank
Also known as: Interest Rate Statement; SNB Statement
Release Date: Quarterly

The SNB's mandate is to maintain market stability while taking economic developments into account. The Swiss National Bank’s monetary policy strategy is comprised of three parts: The SNB Policy Rate; a Medium-Term Inflation Outlook; and a description of Price Stability. By setting the SNB policy rate, the Swiss National Bank implements its monetary policy. It aims to hold short-term Swiss Franc money market rates close to the SNB policy rate by doing so. The Swiss National Bank's Guidelines on Monetary Policy Instruments define both standard and other monetary policy instruments.

How this might affect the currency markets, and impact your trades

The effect of monetary policy on investments is both direct and indirect. The direct influence is through interest rate levels and direction, while the indirect impact is through assumptions about where inflation is going. Monetary policy has an effect on all major asset groups, including stocks, shares, cash, real estate, commodities, and currencies.

Monetary policy changes can impact every asset class significantly. But by being aware of the nuances of monetary policy, investors can position their portfolios to benefit from policy changes and boost returns.

SNB Press Conference

Acronyms:
- SNB: Swiss National Bank
Also known as: Interest Rate Media Conference
Release Date: Twice per year

The SNB, like other central banks, is in charge of monetary policy. It is also in charge of issuing Swiss Franc banknotes. The SNB, unlike many other central banks, is a private entity. A little more than half of its shares are owned by public institutions, with the remainder exchanged on the Swiss Stock Exchange.

How this might affect the currency markets, and impact your trades

The Swiss National Bank's monetary policy decisions, as well as any changes to the Swiss Franc's interest rate, would undoubtedly have a significant effect on the global economy. Interactions between currency pairs will often differ based on these monetary policy decisions, and therefore the four SNB meetings held during the year will have a significant impact on the foreign currency market. Around the time of the SNB conference, there will of course be uncertainty as to what the outcome for the nation's monetary policy will be, and as a result, the Forex market is extremely volatile at this time in the economic calendar. Knowing the meeting dates helps traders to plan their strategy ahead of time, allowing them to either take advantage of uncertainty or escape the riskiness of trading at this time.

High Impact Forex Factory News Events that Affect The Japanese Yen (JPY)

Your Title Goes Here
BOJ Gov ____ Speaks

Acronyms:
- BOJ: Bank of Japan
Release Date: Undefined

The Governor of the Bank of Japan is the most senior position in the Bank of Japan, which is responsible for setting multiple forms of monetary policy, including where interest rates will be set.

How this might affect the currency markets, and impact your trades

The Governor of the BoJ is involved in a number of talks all throughout the year, covering vast subject matters. It is important for traders to be aware of when the Governor of the BoJ is speaking and what they are speaking on so that they are aware of any hints or clues to future financial and economic policy.

This will ensure that as a trader, you are up to date with what is happening with the JPY from a fundamental perspective and will be less likely to be caught off guard if there is a sudden shift in either monetary policy or sentiment.

BOJ Outlook Report

Acronyms:
- BOJ: Bank of Japan
Also known as: Outlook for Economic Activity and Prices; The Bank’s View
Release Date: Quarterly

The Bank of Japan’s Outlook Report is an assessment by the bank during the Monetary Policy Meetings on the bank’s outlook for developments in economic activity and prices, it also assesses any upside and downside risks while outlining the bank’s views on any future course of monetary policy.

How this might affect the currency markets, and impact your trades

The Outlook Report will include a heap of information pertaining to the current economic situation within Japan and is an invaluable insight into the sentiment within Japan’s banking sector.

It is imperative that, as a trader, you are aware of why members of the BOJ have made any changes to monetary policies or if they may make changes to monetary policy in the future.

BOJ Policy Rate

Acronyms:
- BOJ: Bank of Japan
Also known as: Interest Rates
Release Date: Scheduled 8 times per year

The BOJ Policy Rate is the interest rate that is levied on any excess current account balances that are held at the Bank of Japan. Where the interest rate will be set is decided on by a consensus among Policy Board members of the Bank of Japan.

How this might affect the currency markets, and impact your trades

Interest rate decisions by the Bank of Japan are taken with the goal of rising consumption and expenditure and thereby affecting inflation. Changes in demand for currencies as interest rates change will provide opportunities for forex trading. Even when interest rates remain unchanged, the expectation of important events such as monetary policy meetings can have an effect on the forex market. Short-term interest rates are critical in assessing currency value, so traders should keep a close eye on them.

BOJ Press Conference

Acronyms:
- BOJ: Bank of Japan
Also known as: Interest Rate Press Conference
Release Date: Scheduled 8 times per year

The Governor of the Bank of Japan will hold a press conference to communicate monetary policy to the public and investors. This conference will cover a wide range of subject surrounding monetary policy as well as the current economic situation within Japan, and any external factors that may have a bearing on the JPY.

How this might affect the currency markets, and impact your trades

The BOJ Press Conference is littered with valuable information that traders should be paying close attention to, from factors that affected the most recent decision regarding interest rates to inflation and the bank’s overall outlook on the Japanese economy. It also may contain clues to what future monetary policy might look like for Japan.

With this information, you will have a clearer idea of the overall strength of the JPY against other currencies around the world.

Current Account

Also known as: Adjusted Current Account
Release Date: Monthly, 40 days after month-end

The Current Account report shows the difference in value between imports and exports. These imports and exports include goods, services, income flows, and unilateral transfers.

The report is typically released 20 days after the Trade Balance, and so the imports/exports of goods within this report will already be priced into the markets.

How this might affect the currency markets, and impact your trades

The Current Account report links directly with currency demand, if foreigners are buying more of the domestic currency, in this case the JPY, in order to execute transactions within the country, then this will be indicated as a rising surplus.

The higher the figure, the better the effect it will have on the JPY, and the stronger the currency will become.

Lower House Elections

Release Date: Every 4 years, snap-elections possible in between

Representatives are elected to Japan's national parliament, the Diet. The Diet is split into two houses: an upper house (The House of Councillors) and a lower house (The House of Representatives). The lower house has more overall power than the upper house, for example, if the upper house opposes a bill that has been passed by the lower house, it will become law if it is again passed by the lower house, but this time with a two-thirds majority.

Since Japan has a parliamentary political structure similar to that of England, members of the House of Representatives choose a prime minister by majority vote. Typically, the prime minister that is selected will be the leader of the party which holds a majority in parliament. The Prime Minister is the government's leader and appoints a cabinet of political colleagues to assist them in directing the government.

How this might affect the currency markets, and impact your trades

Elections are crucial when it comes to the value of a country’s currency. The opposing sides will often have very different views of how to move the country forward, one will often choose spending and investment, and one will often choose to instead cut costs in order to balance the books. It is important to be aware of each side’s view for the economy and the country as a whole as a dramatic political shift within the country can create a dramatic shift in the overall value of the respective currency.

Monetary Policy Statement

Acronyms:
- BOJ: Bank of Japan
Also known as: Interest Rate Statement
Release Date: Scheduled 8 times per year

The Bank of Japan (BOJ) is responsible for a wide variety of functions, similar to those of other central banks around the world. It serves as the government's bank and the last resort lender. The BOJ oversees issuing currency and, more generally, of monetary policy.

The BOJ, headed up by the Governor of the BOJ, is responsible for setting interest rates as well as other forms of monetary policy. The Monetary Policy Statement provides insight into Japan’s economic conditions and inflation, from the perspective of the bank.

How this might affect the currency markets, and impact your trades

Economic conditions and inflation are two of the most important factors that will influence future monetary policy including where interest rates will be set. Being aware of the current state of the Japanese economy is paramount if you are looking to trade the Japanese Yen and related pairs, as a change in interest rates will have a significant impact on the markets.

Prelim GDP q/q

Acronyms:
- GDP: Gross Domestic Product
Also known as: Real GDP
Release Date: Quarterly, 45 days after quarter-end

The Prelim GDP q/q, released by the Cabinet Office each quarter, is a measure of the overall change in the total value of all goods and services produced within the Japanese economy compared to the previous quarter. Everything that happens within the economy, such as investments, government expenses, exports, consumption, services rendered, impacts this figure.

It is the broadest measure available for economic activity, and it is also the primary tool used to gauge the overall health of the economy within Japan.

How this might affect the currency markets, and impact your trades

The gross domestic product report, like every other piece of significant economic data, carries a lot of weight for currency traders. It shows development in a productive economy while signalling contraction in a declining one. As a result, currency traders will appear to pursue higher GDP or growth rates in the hope that interest rates will follow suit. When an economy expands at a reasonable pace, the gains flow down to the customer, raising the probability of investment and expansion. In exchange, higher spending leads to higher costs, which central banks aim to regulate by raising interest rates.

Upper House Elections

Release Date: Every 3 years

Representatives are elected to Japan's national parliament, the Diet. The Diet is split into two houses: an upper house (The House of Councillors) and a lower house (The House of Representatives). The lower house has more overall power than the upper house, for example, if the upper house opposes a bill that has been passed by the lower house, it will become law if it is again passed by the lower house, but this time with a two-thirds majority.

Since Japan has a parliamentary political structure similar to that of England, members of the House of Representatives choose a prime minister by majority vote. Typically, the prime minister that is selected will be the leader of the party which holds a majority in parliament. The Prime Minister is the government's leader and appoints a cabinet of political colleagues to assist them in directing the government.

How this might affect the currency markets, and impact your trades

Elections are crucial when it comes to the value of a country’s currency. The opposing sides will often have very different views of how to move the country forward, one will often choose spending and investment, and one will often choose to instead cut costs in order to balance the books. It is important to be aware of each side’s view for the economy and the country as a whole as a dramatic political shift within the country can create a dramatic shift in the overall value of the respective currency.

High Impact Forex Factory News Events that Affect The Chinese Yuan (CNY)

Your Title Goes Here
Caixin Manufacturing PMI

Acronyms:
- PMI: Purchasing Managers’ Index
Release Date: Monthly, on the first business day of the new month

Purchasing Managers are typically on the front-line and the first to know when a company is expanding or contracting. Therefore, Purchasing Managers are surveyed by institutions such as ‘Markit’ so that an accurate assessment of industries can be made. These assessments serve as leading indicators to traders and investors as they give a detailed view from the frontlines of how the economy is fairing within a particular sector.

The Manufacturing PMI consists of 500 surveyed Purchasing Managers that are asked to rate the relevant levels of business and business conditions, including things like new orders, production, supplier deliveries, inventories, prices, and employment.

Due to the nature of this index, the reading provided is centred around the 50 figure, with a reading above 50 suggesting that there is expansion within the manufacturing industry, and a reading below 50 suggesting that there is contraction within the manufacturing industry.

How this might affect the currency markets, and impact your trades

Manufacturing is quick to react to any fluctuations within the business cycle and is therefore inherently correlated to consumer conditions such as employment, spending, and earnings.

Due to the nature of this report, it is important that traders stay informed on the Manufacturing PMI in order to determine the current health of the economy, and how that might change in the future if there are vast swings within the report compared to previous releases.

CPI y/y

Acronyms:
- CPI: Consumer Price Index
Release Date: Yearly, 10 days after month-end

The CPI, or inflation rate, is at the top of every central bank's agenda. Changes in inflation cause the central bank's monetary policy to change from easing to tightening, from dovish to hawkish language, and so on. This is due to the fact that every central bank in the world has an inflation mandate, whether it is the entire mandate or just a portion of it. A traditional mandate is to hold inflation below or close to 2%. There is a vigorous discussion these days about whether this inflation level is acceptable in the current environment, but we are sticking with it until something changes because it helps economies to develop at a normal rate.

How this might affect the currency markets, and impact your trades

Inflation is a significant factor affecting all currencies, including the Chinese Yuan. In general, countries with high levels of inflation compared to other countries will see their currency depreciate, resulting in relatively equal prices of goods between countries. Furthermore, higher-than-expected inflation would cause the central bank to raise interest rates in order to control inflation.

GDP q/y

Acronyms:
- GDP: Gross Domestic Product
Also known as: Real GDP
Release Date: Quarterly, 18 days after quarter-end

The GDP q/y, released by the National Bureau of Statistics of China each quarter, is a measure of the overall change in the total value of all goods and services produced within the Chinese economy compared to the previous quarter. Everything that happens within the economy, such as investments, government expenses, exports, consumption, services rendered, impacts this figure.

It is the broadest measure available for economic activity, and it is also the primary tool used to gauge the overall health of the economy within China.

How this might affect the currency markets, and impact your trades

The gross domestic product report, like every other piece of significant economic data, carries a lot of weight for currency traders. It shows development in a productive economy while signalling contraction in a declining one. As a result, currency traders will appear to pursue higher GDP or growth rates in the hope that interest rates will follow suit. When an economy expands at a reasonable pace, the gains flow down to the customer, raising the probability of investment and expansion. In exchange, higher spending leads to higher costs, which central banks aim to regulate by raising interest rates.

Industrial Production y/y

Also known as: Industrial Output
Release Date: Monthly, 15 days after month-end (excluding February)

Central banks around the world publish a report on the total output of raw materials provided by industries such as factories, mines, and electric utilities. Manufacturing, mining, and gas are examples of raw materials. Industrial production refers to the production of raw materials within the world. Changes in productivity may explain changes in the structure of that country's economy. Printing industries such as newspaper and book publishing are also exampling of industrial development. Central banks release this data on a monthly basis to better understand market fluctuations in raw materials.

How this might affect the currency markets, and impact your trades

In general, changes in industrial output represent changes in overall economic activity. As a result, if a country's economic output rises, the currency's value rises as well, and if it falls, the currency's value falls as well. Achieving high figures in this region can be viewed as a bullish sign for the country's currency. Traders should try to grasp the significance of this economic measure and consider keeping an eye on it because it can have a direct effect on the currencies they hold.

Manufacturing PMI

Acronyms:
- CFLP: China Federation of Logistics and Purchasing
- PMI: Purchasing Managers’ Index
Release Date: Monthly, on the last day of the current month

Purchasing Managers are typically on the front-line and the first to know when a company is expanding or contracting. Therefore, Purchasing Managers are surveyed by institutions such as the China Federation of Logistics and Purchasing so that an accurate assessment of industries can be made. These assessments serve as leading indicators to traders and investors as they give a detailed view from the frontlines of how the economy is fairing within a particular sector.

The Manufacturing PMI consists of 3,000 surveyed Purchasing Managers that are asked to rate the relevant levels of business and business conditions, including things like new orders, production, supplier deliveries, inventories, prices, and employment.

Due to the nature of this index, the reading provided is centred around the 50 figure, with a reading above 50 suggesting that there is expansion within the manufacturing industry, and a reading below 50 suggesting that there is contraction within the manufacturing industry.

How this might affect the currency markets, and impact your trades

Manufacturing is quick to react to any fluctuations within the business cycle and is therefore inherently correlated to consumer conditions such as employment, spending, and earnings.

Due to the nature of this report, it is important that traders stay informed on the Manufacturing PMI in order to determine the current health of the economy, and how that might change in the future if there are vast swings within the report compared to previous releases.

Trade Balance

Acronyms:
- CGAC: Customs General Administration of China
Release Date: Monthly, 10 days after month-end

The Trade Balance is the net amount of a country's goods exports and imports, excluding all capital transactions, deposits, and other financial components. If the value of exports exceeds the value of imports, a country's Trade Balance is positive (meaning it has a surplus). If the value of imports exceeds the value of exports, a country's Trade Balance is negative, or it reports a deficit. The official term for net exports in the current account is the Trade Balance.

How this might affect the currency markets, and impact your trades

The country's currency is directly influenced by Trade Balance. If a country's exports outweigh its imports, we may assume that its goods are in high demand on the global market. This would have a direct positive effect on that country's currency as demand for its currency grows. This occurs because if there is a strong demand for the goods, prices rise, and the currency's value rises. In contrast, if a country's imports exceed its exports, it means that there is less global demand for the goods manufactured by that country. As a result, there would be less demand for its currency, resulting in a weakening of its value.

USD-Denominated Trade Balance

Acronyms:
- CGAC: Customs General Administration of China
Release Date: Monthly, 10 days after month-end

The balance of trade (BOT) is an economic indicator that calculates a country's net exports, or the difference between imports and exports over a given time span. The balance of trade usually accounts for the lion's share of a country's balance of payments (BoP).

The balance of trade of a nation is made up of more than just commodities exports and imports. Other elements include foreign assistance, domestic spending, and international investments. Analysts calculate a country's true trade surplus or deficit by subtracting the components that raise the balance of trade from those that decrease it.

How this might affect the currency markets, and impact your trades

When a nation exports more than it imports, there is a strong demand for its products and, as a result, its currency. When demand is strong, prices increase and the currency appreciates in value, according to supply and demand economics. In comparison, if a nation imports more than it exports, there is less demand for its currency, causing prices to fall. Money depreciates or loses value in this situation.

News Releases

The Forex Factory News Releases can be found at the top of the Forex Factory website:

Each block on this page can be fully customised to give you the news that you find most important for your trading style. Simply click the button at the top of each block to open the menu:

Once opened, you will find the following options:

The Categories

You can customise which type of news publication is displayed using the options under the ‘Show Category’ heading.

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All News

This will show all the news publications currently ongoing.
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Fundamental Analysis

This will show you any published Fundamental Analysis.
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Entertainment News

This will show any news publications that could be considered ‘Entertaining’ within the world of Finance. These publications would not have any impact on the Forex Market.
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Breaking News

This will show only Breaking News publications.
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Technical Analysis

This will show you any published Technical Analysis.
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Forex Industry News

This will show you any news publications that are happening within the Forex Industry itself, such as lawsuits, sponsorships, company expansions, acquisitions, etc.
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Educational News

This shows any news publications that provide education or insight into the various mechanisms of the Forex Market. Such as regulations, explanations of indicators, histories of various laws or institutions, and so on.

The Display Format

You can customise how each news publication is displayed using the options under the ‘Display Format’ heading.

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Headlines

This will simply show the Title, Source, and Release Time, like so:

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Large Stories

This will show the Title, Source, Release Time, Long Description, and an image, like so:

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Stories

This will show the Title, Source, Release Time, Description, and an image, like so:

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Comments

This will show users commenting on posts, displaying the User’s name, how long ago their comment was posted, the contents of their comment, as well as the publication that they were commenting on, like so:

Sorting the News

Sort By

This option allows you to sort the news events within the block according to a few predefined parameters explained below:
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Latest

This option displays the publications in the order of release with the latest of these publications at the top of the list.
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Last Commented

This option displays the publications that have received the latest comments, with the one receiving the last comment at the top of the list.
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Most Viewed

This option displays the publications that have been viewed the most. Selecting this option allows you to use the ‘Sort Period’ function to choose the time-period in which it counts those views. Your options for this are: Last 12 Hours, Last 24 Hours, Last 48 Hours, Last 7 Days, and Last 30 Days.
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Hottest

This option displays the publications in the order of the most popular, with the ‘hottest’ being those with the most views, comments, and other interactions.
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Most Commented

This option displays the publications that have been commented on the most. Selecting this option allows you to use the ‘Sort Period’ function to choose the time-period in which it counts those comments. Your options for this are: Last 12 Hours, Last 24 Hours, Last 48 Hours, Last 7 Days, and Last 30 Days.
If you select the ‘Comments’ option in the Display Format, you will be given a different set of options for the ‘Sort By’ menu. These include: Latest (Showing the latest comments), Latest Liked (Showing the comment with the latest like), and Best Liked (Showing the comment with the most likes within the selected ‘Sort Period’).

Central Bank Rates

At the bottom of the News Page, on the right-hand side you will see a block labelled ‘Central Bank Rates’.

This block shows the current Official Bank Rate that has been set by the Central Banks of the major currencies, sorted by their respective rates with the highest rate at the top, and the lowest at the bottom.

Current Market Prices

The Forex Factory Market Prices can be found at the top of the Forex Factory website:

While only including a single Scanner, Single Instrument Chart, and the 4 Trading Sessions at the bottom of the page, you can add extra Scanners up to a total of 5, and extra Instrument Charts up to a total of 3.

Scanner

The Scanner is the top-most block on the Market page of Forex Factory. Here you can fully customise which instruments you would like to see as well as the relative information about those instruments:

At the top of this block, you will see a tick-box labelled ‘Live’. This is unchecked by default. Checking this box gives you live price-updates as and when they happen.

Columns

If you wish to change the instruments on each column, simply click any of the instrument titles at the top of each column and select a new instrument:

Once you start typing in this box, you will see a list of suggestions like so:

Simply click the one you desire, and then click ‘Save’. Your chosen instrument should now be displayed in the Scanner block.

Rows

If you wish to change the information that is being provided in each row for your chosen instruments, simply click any of the row’s titles:

This will open a new menu where you can select which metric you would like to view in this chosen row:

Settings

At the top of the Scanner block you will see a button labelled ‘Settings’:

Click this to gain access to more options for this block:

Here you can change the name of the Block to anything you desire. You can also increase or decrease the number of rows being displayed from 1 to 8. You can also select how many columns are displayed in this block from 1 to 8. The final option allows you to either show or hide the ‘pippettes’ (The extra unit shown in grey at the end of the current price of each instrument).

Individual Instrument

The Individual Instrument refers to the block below the Scanner. It shows the chart of a single instrument (EUR/USD by default):

At the top of this block, you will see a tick-box labelled ‘Live’. This is unchecked by default. Checking this box gives you live price-updates as and when they happen.

Time Frame

At the top of this chart, you can select the time frame that you would like the candlesticks displayed to represent. The options are 1 Minute, 5 Minutes, 1 Hour, 4 Hours, 1 Day, or 1 Month by default:

Lines

At the top of the chart you will also notice a button labelled ‘Lines’:

Once you click this button it will open a menu like so:

In this menu you can select a type of line to draw on the chart:

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Point to Point

This allows you to click one point of the chart, setting the start point, and then click a second point of the chart, setting an end point. A line will then be drawn between those two chosen points.
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Vertical

This allows you to click anywhere on the chart and immediately draw a vertical line.
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Horizontal

This allows you to click anywhere on the chart and immediately draw a horizontal line.

You can also change the colour of the line you wish to draw by clicking the colour option beside each line optionLine option

This will open a simple colour-menu for you to either input a hexadecimal colour value, or simply click and select a preferred colour using the slider and circle-selector:

Settings

At the top of this block, you will also find a button labelled ‘Settings’:

Click this to open up the Settings menu for this block:

Here you will find that you can customise this block in a number of ways:

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Observed Time Zone

Here you can set a custom Time Zone if you do not want it to match your selected Forex Factory Time Zone. It is set to ‘Match My FF Time Settings’ by default.
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Chart Height

Here you can set a custom height for the block. It is set to 350 pixels by default, but you can increase or decrease as you wish. The minimum height is 150 pixels, and the maximum height is 999 pixels.
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Chart Width

Here you can set the width of the chart to either Full-Width, or Half-Width. The chart is set to Full-Width by default.
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Bar Type

Here you can choose how you would like the chart to be displayed. There are 5 options:
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Candle

This is the default view; it shows market activity in Japanese Candlesticks.
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Line

The Line option displays a line drawn from each close price of your selected time frame.
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Area

The Area option displays a line drawn from each close price of your selected time frame with the area below the line filled with your chart’s chosen ‘Data’ colour.
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OHLC

This stands for Open-High-Low-Close. It shows a single vertical line with the top indicating the high, and the bottom indicating the low. It also shows two horizontal lines, the left line indicating the ‘open’ price for this candle, and the right line indicating the ‘close’ price for this candle.
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Line (dotted)

The Line (dotted) option displays a line drawn from each close price of your selected time frame with a single dot indicating the location of each close point.
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Displayed Intervals

Here you can choose to include or exclude the time frames displayed at the top of your chart.
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Cursor

Here you can choose what you see when you mouse-over the chart:
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Cross

This option displays a horizontal and vertical line on the chart originating from your cursor placement to the time at the bottom of the chart, and the price at the right of the chart.
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Vertical

This option displays only a vertical line on the chart originating from your cursor placement to the time at the bottom of the chart.
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Colors

Here you can change the colours displayed on your chart:
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Background

This allows you to change the colour of the background on your chart.
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Horizontal

This option displays only a horizontal line on the chart originating from your cursor placement to the price at the right of the chart.
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None

This option displays no lines from your cursor.
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Data

This allows you to change the colour of your candlesticks and lines. Bullish candles will be outlined in this colour, whereas Bearish candles will be filled with this colour.
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Grid

This allows you to change the colour of the grid on your chart, comprised of fixed horizontal and vertical lines.
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Mouse Wheel Zooming

This option allows you to activate or deactivate whether using your mouse-wheel over the chart zooms in or out of the chart.

Extras

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Sessions

At the bottom of this chart, you will also see a row labelled ‘Sessions’. This section will have horizontal lines going across it which represent the 4 trading sessions around the world: The London Session; The New York Session; The Sydney Session; and the Tokyo Session.
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News

You will also see a row at the bottom of this chart labelled ‘News’. This section shows you News Events which may influence the chosen instrument. Hover over them to find out more about them.

Sessions

Located at the bottom of the Forex Factory Market page, this block shows the 4 trading sessions that occur in the Forex Market and the local time in these locations.

It also shows the current trading session(s) highlighted in green, and the current time, represented with a horizontal green line:

The Forex Factory Forum

The Forex Factory Forum can be found at the top of the Forex Factory website:

Here you will find posts and discussions from users around various topics of trading.

The Categories

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Interactive Trading

This forum category is the most popular, it is home to discussions about individual currency pairs, and various kinds of analysis.
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Trading Systems

This forum category encompasses discussions on various trading systems as well as strategies, it is a place for people to come together and discuss various methods for trading and all the systems on offer throughout the industry.
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Trading Discussion

This forum category is used to discuss many areas surrounding trading, from indicators and styles of analysis to the kind of music people listen to whilst trading.
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Platform Tech

Within this forum category, you will discover a multitude of discussions surrounding indicators, add-ons, expert advisors (EAs), and much more.
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Broker Discussion

This forum category is where people often discuss the advantages or disadvantages of particular brokerages, you can find much more valuable information on brokers here than you would on review sites.
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Trading Journals

This forum category includes different trading journals from different users, some showing their trading style or trading patterns, and some showcasing their progress. You can find some impressive trades within this forum that can provide valuable insight into the markets.
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Rookie Talk

This forum category is typically where you will find questions or comments posted by relatively new traders that are seeking advise or guidance in the markets.
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Commercial Content

This forum category is where you will find discussions about commercial products and paid services such as trading systems, analysis, expert advisors, and more.
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Members’ Lounge

This forum category is only visible once you are registered and logged in to Forex Factory. The category itself has no real definition outside of being somewhat miscellaneous.

Customising Your Blocks

All the blocks you see on the Forum page are easily customisable to ensure you can focus on the topics or discussions that most interest you. Below we will show you just how you can edit these blocks to suit your own individual needs.

At the top of each block, you will find its relative title:

Simply click this button to open the block’s menu:

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Show Forum

Here you can choose which forum to display within your chosen block. If ‘Hottest’ or ‘Last Replied’ is selected in the ‘Sort By’ section, then Broker Discussion, Trading Journals, and Rookie Talk will not be selectable.
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Display Format

Here you can choose whether to display Threads (a series of linked posts/messages), or Replies (individual posts within existing Threads).
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Sort By

Here you can select how you would like the block’s content to be ordered:
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Latest

This option displays the threads in the order of posting with the latest of these threads at the top of the list.
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Last Replied

This option displays the threads that have received the latest replies, with the one receiving the last reply at the top of the list.
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Most Viewed

This option displays the threads that have been viewed the most. Selecting this option allows you to use the ‘Sort Period’ function to choose the time period in which it counts those views. Your options for this are Last 12 Hours, Last 24 Hours, Last 48 Hours, Last 7 Days, and Last 30 Days.
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Hottest

This option displays the threads in the order of the most popular, with the ‘hottest’ being those with the most views, replies, or likes.
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Most Replied

This option displays the threads that have been replied to the most. Selecting this option allows you to use the ‘Sort Period’ function to choose the time period in which it counts those replies. Your options for this are Last 12 Hours, Last 24 Hours, Last 48 Hours, Last 7 Days, and Last 30 Days.
If you select the ‘Replies’ option in the Display Format, you will be given a different set of options for the ‘Sort By’ menu. These include: Latest (Showing the latest replies), Latest Liked (Showing the replies with the latest like), and Best Liked (Showing the replies with the most likes within the selected ‘Sort Period’).

Trades Opened by Other Users

The Forex Factory Trades page can be found at the top of the Forex Factory website:

Trade Feed

The first block on this page is set to the Trade Feed by default. This shows you the latest trades taken by other users of Forex Factory.

At the top of this block, you will find a checkbox labelled ‘Stream’, this ensures the Trade Feed stays updated, allowing you to view trades happening as they are placed.

Settings

Clicking the label of this block will open its settings menu:

Here you can customise which trades are displayed.

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Trade Type

This section determines which trades are displayed to you, ‘All Trades’ is selected by default.
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This shows you all the trades currently being taken by users of Forex Factory, including Entries, Exits, Winning Exits, and Losing Exits.
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Exits

Choosing this option will only show people exiting trades within the Trade Feed.
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Losing Exits

Choosing this option will only show people’s trades that they have closed and made a loss.
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Entries

Choosing this option will only show people entering trades within the Trade Feed.
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Winning Exits

Choosing this option will only show people’s trades that they have closed and made a profit.
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Brokerage Account Type

This section determines which accounts are included within the Trade Feed on your personal display.
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Live Accounts

This option will only show trades that are happening on Live trading accounts where people are staking real capital.
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Demo Accounts

This option will only show trades that are happening on Demo trading accounts where people are not staking real capital.

Filter

At the top of this block you will find the ‘Filter’ option:

Clicking this will open the Filter menu:

Here you can make a number of changes to suit your individual trading style.

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Impact Hurdle

Each user is assessed to determine their ‘impact’ within Forex Factory, these labels are assigned as High Impact (Red), Medium Impact (Orange), Low Impact (Yellow), or No Impact (None).
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Off

This will show all trades carried out by users regardless of their relative ‘impact’ level.
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Only show trades from members ranked at least

This allows you to select either the High, Medium, or Low Impact options so that you are exclusively shown the trades being carried out by that particular group of traders.
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Subscriptions

Here you can select whether your Trade Feed is populated by trades carried out by traders you are subscribed to, or whether it is populated by the full user-base of Forex Factory.
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Off

This will show you trades carried out by all users within Forex Factory, regardless of your subscription status to their individual trades.
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Only show trades from members you are subscribed to

This will show you trades that are being carried out by the traders you have personally subscribed to within Forex Factory.
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Currency Pairs

Here you can select the individual currency pairs that you would like to see within the Trade Feed. Simply tick the ones that you would like to be included and untick the ones that you would like to be excluded. You can also click one of the quick-links at the top of this section to select all currency pairs (all), none of the currency pairs (none), or only the major currency pairs (majors). You will also notice the ‘Non-Forex’ option within the list, this allows you to either view or hides trades that are carried out on various commodities and indices.

Leaderboard

The Forex Factory Forum can be found at the top of the Forex Factory website:

The Leaderboard is located on the right-hand side of the Trades page by default, it shows the top-performing trading accounts over a given time period. It is set to show performances from live trading accounts from the current month by default.

Clicking the label at the top of this block opens its ‘Settings’ menu:

Here you can customise the block to your own individual preferences:

Ranking Period

This determines the timeframe from which trading accounts are judged, you can choose to view performances from the current week, the current month, or the current year.

Brokerage Account Type

This determines which kind of account is displayed, you can choose to view either Live accounts which are traded with real capital, or Demo accounts which are not traded with real capital.

Positions

The Positions block tracks the total number of open positions for 8 individual instruments.

Settings

If you click the label at the top of this block you will open the settings menu:

Here you can change your ‘Meter Type’:

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Traders

This tracks the number of traders going long (buying) or going short (selling) on your chosen instruments.
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Lots

This tracks the number of lots currently being traded on both the long (buy) and short (sell) sides
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Traders and Lots

This tracks both the number of traders going long (buying) or going short (selling) on your chosen instrument as well as the number of lots currently being traded on both the long (buy) and short (sell) sides.

Columns

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Instrument

You can change the 8 displayed instruments by clicking the instrument name like so:

Unfortunately, the box will not try and guess the instrument you are trying to type unlike the Scanner block on the Markets page, so you will need to be precise about which instrument you wish to track.
(You can submit your desired currency pair with or without the separating slash ‘/’)

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Long Traders/Lots vs Short Traders/Lots

This column shows you both a visual representation of long traders/lots and short traders/lots as well as precise figures such as the total number of traders/lots on each side and the percentage share of those traders/lots:

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Detail

In the detail column you will find a folder icon, click this to expand that particular instrument and find further, more detailed information about current positions:

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Position Stats

This tracks the number of statistics including the number of Forex Factory users currently in a trade on your chosen instrument, the lots they are currently trading, the average Entry price, the average return on their trades, the average duration of those trades, the number of winning trades, and the number of losing trades.

Hover over the ‘’ to find out more about each particular metric.

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Long-Short Ratio

This tracks the total ratio of long traders/lots to short traders/lots over your selected time frame. You can choose either the 5 minutes (5M), 1 hour (1H), or Daily time frame for this section. This data is represented in a graph:

You can expand this section vertically by clicking and dragging the two grey arrows ( grey arrow) located at the bottom right of this section, and you can contract and expand the time period being displayed using the slider at the bottom or the magnifying glass buttons (magnifying glass buttons) located at the top right-hand side of this section.

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Traders

This section shows you the current trades or lots that are open on the selected instrument, showing entry prices on the trades, and lot values on the lots:

The Forex Factory Trade Explorer

The Forex Factory Trade Explorer is only usable once you have registered for an account on Forex Factory.

To create an account, simply click the ‘Join’ button at the top right corner of the page:

You will then be taken to a registration form:

Simply fill this form, click ‘Join Forex Factory’.

Setting Up Your Trade Explorer

Once you have created your account, click your username, located at the top right corner of the screen:

This will take you to your Forex Factory Profile:

Underneath the heading ‘Trade Explorers’, click ‘Create Trade Explorer’.

This will take you to another form where you will input your account details in order to set up your Trade Explorer:

Choose the name for your Trade Explorer and fill in all the remaining details.

Please note that your trading account password and the investor password for your trading account are different. If you are unsure what your investor password is, or how to access it, please contact your broker.

Once you have completed the form, simply click ‘Create Trade Explorer’.

At the bottom of your profile page, you will now see your new Trade Explorer:

If you have any trades completed on the account, these will be synchronised with this Trade Explorer and appear on your profile.

Settings

At the top of the Trade Explorer block you will see a settings button:

Click this to open the settings menu where you can make alterations to your Trade Explorer:

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Trade Explorer Name

The name that will be shown for your Trade Explorer.
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Money and Lots

Changing this will change who is able to see the money or lot values currently being traded on your trading account within your Trade Explorer, the options are: Public, Buddies Only, and Me Only.
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Pending Orders

Changing this will change who is able to view the orders that are currently pending within your trading account in your Trade Explorer, the options are: Public, Buddies Only, and Me Only.
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Custom Start

This is where you can decide where you would like your Trade Explorer to start including trades and trading activity. You can choose a custom date, or simply choose the full history of your trading account.
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Trading Style

This lets you tell viewers what your Trading Style is by selecting one of the options from the drop-down menu, the options are: Automated, Fundamental, Hybrid, Quantitative, Technical, and Other.
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Change Investor Password

This is where you can amend your investor password if it was changed and is no longer connected.
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Visibility

Changing this will change who is able to view your Trade Explorer, the options are: Public, Buddies Only, and Me Only.
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Stops and Targets

Changing this will change who is able to view the placements of your stop losses and target levels within your Trade Explorer, the o