There is a wide range of factors that can affect the price of any given currency pair, and it is impossible to account for every possible variable. However, there are certain key events that practically all forex traders need to pay attention to, as these events can have a ripple effect on the entire economy. Here are some of the major events that can have an impact on the prices of forex pairs.
Elections can have a significant impact on a country’s currency. Some parties might be seen as more conservative and fiscally responsible, while others as more democratic and amenable to spending. Generally, elections can be accompanied by increased market volatility.
Macroeconomic data is the most important and heavily relied upon information when it comes to forex trading. This is because it is the data which is most pertinent when it comes to the strength of an economy, i.e., what the currency valuation essentially is. You can find this data using the Economic Calendar. Popular macroeconomic factors include:
You can identify and plan for macroeconomic events using Plus500’s economic calendar, which is accessible both on the website and through the platform. The calendar summarises major economic events and the currencies and/or other financial instruments that would most likely be affected.
You need to look for the events that may have an impact on the currency pairs that you are trading. Identify major economic events carefully and track them over time. Our CFD Trading Platform offers plenty of resources, coupled with a user-friendly interface and a suite of sophisticated trading tools and forex indicators.
However, please remember that any information contained in this article, on the Plus500 website or platform, is general in nature and it does not take into account your personal circumstances.