Economic News and The Week Ahead

SamTrader1

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By, BinaryOPtionStrategy.com
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ECONOMIC NEWS

This week was dominated by the ECB scheduled rate decision whic raised rates by 25bps. However, markes were unhased by Trichet’s less than hawkish comments after. Also, the US failed to settle on a new budget but reached an agreement to extend the current budget by another week. US wholesale inventories rose 1.0 percent to $473.9 billion, the highest level since December 2000, according to the Commerce Department. Wholesale inventories also rose 1.0 percent in January.

THE WEEK AHEAD

MONDAY: earnings from Alcoa and Chevron’s interim results after the bell.

TUESDAY: International trade, import and export prices, 3-year Treasury note auction, Treasury budget, CFTC’s Gensler testifies on derivatives regulation, Dudley speaks, Bank of NY Mellon shareholder meeting

WEDNESDAY: Weekly mortgage applications, retail sales, business inventories, oil inventories, 10-year Treasury note auction, Beige Book, United Technologies shareholder meeting; earnings from JPMorgan before-the-bell.

THURSDAY: Weekly jobless claims, PPI, 30-year Treasury bond auction, Kocherlakota speaks, Plosser speaks, Lacker speaks, Nestle shareholder meeting; earnings from Hasbro before-the-bell and Google after-the-bell.

FRIDAY: CPI, Empire state manufacturing survey, Treasury international capital, industrial production, consumer sentiment, credit card default rates reported; Evans speaks, Hoenig speaks, G24/International Monetary Affairs meeting; Earnings from Bank of America and Mattel before-the-bell
 
The creation and expiation of the Internet has resulted in a change in the way news is presented. Not only are individuals with computers and Internet able to get news faster, they are also exposed to a greater amount of world news than ever before. For those that are involved in foreign exchange trading this availability of news has helped many make millions.Unfortunately, some new traders, encouraged by the success of others who have utilized the news, have attempted to make large trades based on economic news and have lost millions. Forex trading on economic news is encouraged and can be profitable but it takes experience and market understanding to make the best financial trading decisions.Forex trading on economic news is trading that is done based on news reports that may affect a countries economy and currency. Economic hardship in a country might cause its currency value to drop while advancement might cause its value to skyrocket. Many Forex traders that are being influenced by news and using news reports to make decisions must be able to tell what news will actually make an impact on the market and which news items will have no effect.
 
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