How does news affect the foreign exchange market?
1. Monetary policy. For example, the new monetary policy issued by the central bank will immediately affect the performance of currency pairs. If the interest rate changes too fast or too slow, or there are unexpected comments on the future interest rate forecast, the currency pair will rise and fall at the speed of light. 2. Release of macroeconomic data. Another important type of foreign exchange news that can make the exchange rate react quickly and strongly is macro data release and report. One of the most obvious examples is the quarterly GDP data released by the United States. 3. Geopolitical events. Some global geopolitical events have also had a considerable impact on the foreign exchange market. The consequences of war, political scandals, elections, peace treaties, nuclear tests and terrorist attacks usually cause a series of influences and expectations. The influence of news on foreign exchange market can not be ignored. Whether it is short-term trading or long-term trading, the positions held will be affected by foreign exchange news. Foreign exchange traders should always pay attention to all relevant news and make market trading decisions accordingly, which is the importance of foreign exchange news.