Political news factors refer to a series of unexpected events in social and political society. Generally speaking, dog biting is not news, but man biting dog is news. Political and news factors affecting the foreign exchange market include regime change, elections, wars, major policy changes, etc. When some political events are about to happen, the foreign exchange rate usually weakens because of the uncertainty involved, that is, when things are uncertain.
In some cases, the market may be quite certain about the outcome of the event, and the exchange rate will reflect the relevant expectations in advance, either rising or falling. Before political and news events happen, there are often some rumors, and the foreign exchange trading market will respond to various political and news rumors accordingly. If the rumors are really credible, the exchange rate will react; When the rumors are verified, the market may no longer respond. So there is an old saying: buy when rumors appear, sell after rumors are confirmed-FX 678 foreign exchange channel.