As far as the currency market is concerned, most of the traders use either a fundamental or technical analysis or combination of both for formulating the scheme. However, for a casual currency dealer, event or news risk can have theatrical influence on short-term and long term cost action of the pair of currency.
In this particular report, we check five most popular marking moving pointers for US dollar against Euro. The main reason behind focus on USD/EUR is the status as actively traded and thus benchmarks the pair of currency.
Economic Data is Vital for Both the Fundamental and the Technical Dealers
It is indisputable that economic data or news can easily provoke an important reaction from the currencies and several other types of financial markets. However, keep in mind that all the economic data is not created in an equal manner. The non-farm employees every month for instance have a huge impact on US dollar compared to other perennial market movers like the consumer costs. Pointers rarely keep the similar influence level over the currency, therefore it is common to notice major move in top ranking from one year to another.
For instance, since the last year, the poorest contraction in the housing market of US in the quarter century has several led indicators like existing and new house sales to troop out popular releases from earlier years, like for example ISM manufacturing. In addition, what might develop a long lasting move in the currency on a regular basis could be a bit different from the things that trigger the reaction in US dollar.
The popular 5 market moving pointers for dollar on a regular basis are:
• Non -farm payroll
• ISM non-manufacturing
• Personal Spending
• Existing house sales
Unlike other numbers, non-farm employees report steadily topped list of market moving pointers for US dollar. When the economy of US started falling in the year 2007 and 2008, steadiness of labor market was noticed by all the dealers and analysts due to its wide ramifications for overall economy.
What is in store for future?
While you might thing that daily news is having a small impact on US dollar at a slow rate, popular market moving pointers will have an impact on both the fundamental and technical trading. The trading market is very sensitive to surprise the releases from most of the fundamentally important economic releases. What else do you want more? Cooler response to the scheduled pointers over a permanent will not be long lasting. As the risks involved in recognition and other monetary markets starts tempering, the participants of the market will be willing to take speculative risks and respond to evolving important docket.