How to analyze currency movements as a professional

analyze currency

How to analyze currency movements as a professional

A decision to buy or sell one currency against another when trading in the Forex market may be one of the most difficult decisions a trader faces, but when simplified

the decision is to determine the direction of long and medium term currencies through a simple news analysis. There are several factors to be aware of when analyzing currency movements

How can I identify trends in the Forex market through news analysis

By examining the level of inflation, interest rates, employment reports, unemployment rates, and assessing, them well to determine the initial features of the direction of the currency in the long term, and always prefer to see the reports issued by the economic committees within the central banks

which will help the trader to determine the general trend. In these reports, economic plans that would reduce or raise the price of the currency clarified

Is it possible for a country to seek to reduce the price of its currency

Certainly, most exporting countries are trying to reduce them in order to encourage other countries to import them by paying less value to their purchases due to the low price of the country’s exporting currency

One example is China’s attempts to lower its currency and the US’s opposition to it because of the large share of China’s share of US exports and China’s share of US debt. That this reality does not apply to the economy of the Arab countries as most of the Arab countries are domineering and not exporting

The situation of the labor market and its impact on markets

The labor market has always had a significant impact on the price of currencies because it linked to the movement of the economy or the natural course of movement of money in society from one person to another

 For example, if the rate of unemployment increases significantly and no solutions or ideas are available to decision makers, Which will affect the consumer confidence in the economy and thus aggravate the recession due to the lack of movement of the economy

which will force institutions or services to close or reduce activities such as clubs, restaurants, cafes and other means of entertainment and entertainment

 Which will lead to lower income For people worldwide And try to reach only the minimum expenses

There are also countries that provide unemployment benefits to citizens who are unable to get a job opportunity to fight the problems that result from the increase in unemployment in society, which is a burden on the state and its treasury, which is a loss

Let us conclude that there are economic events that affect the state of the country’s currency

Therefore, it is necessary to read them correctly for the ability to analyze currency movements, which will facilitate the trader to seize opportunities on short price charts and take advantage of long-term price movements


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