The Forex market (Forex) is highly influenced by economic and political news. Professional traders not only rely on technical analysis but also pay close attention to key news events that can shift price trends. Forex news can cause significant volatility in the market and, in some cases, alter the overall direction of a currency pair.
Why Are News Important in the Forex Market?
The Forex market is a decentralized international market, where currency values fluctuate based on supply and demand. However, one of the most crucial factors affecting supply and demand is economic and political events.
When economic data is released, it reflects the strength or weakness of a country’s economy. If an economy is performing well, the value of its currency increases. Conversely, if the economic data is negative, the currency’s value decreases.
The volatility caused by news can create profitable opportunities, but at the same time, it increases trading risks. That is why professional traders always follow the Forex economic calendar to stay informed about the timing of important news releases.
Key Economic News Impacting the Forex Market
Key economic news impacting the Forex market includes data that reflects economic growth, inflation, monetary policies, and key labor market indicators. These reports can create significant fluctuations in currency values and alter both short-term and long-term market trends.
1. Central Bank Interest Rate Decisions
One of the most influential economic events in the Forex market is the interest rate decisions made by central banks. These decisions directly affect currency values, investment flows, and inflation expectations.
Major central banks whose interest rate policies impact the Forex market include:
- Federal Reserve (Fed) – United States
- European Central Bank (ECB)
- Bank of England (BoE)
- Bank of Japan (BoJ)
These banks hold monthly or quarterly meetings to decide whether to raise, lower, or maintain interest rates.
Why Are Interest Rates Important?
Interest rates play a crucial role in attracting foreign investments and determining the value of a currency.
- Rising interest rates: If a central bank increases interest rates, the value of that currency tends to strengthen as investors seek higher returns.
- Lowering interest rates: A decrease in interest rates generally weakens the currency as investors move their capital to higher-yielding markets.
Interest rate decisions also impact stock markets, bond yields, and inflation levels. Forex traders closely monitor central bank meetings to predict currency movements and take advantage of trading opportunities.
2. U.S. Non-Farm Payrolls (NFP) Report and Its Impact on Forex
The U.S. Non-Farm Payrolls (NFP) report is one of the most important economic data releases in the Forex market. It is published on the first Friday of each month by the U.S. Bureau of Labor Statistics (BLS) and measures job creation in non-agricultural sectors of the U.S. economy.
Why Is the NFP Report Important?
This report has a direct impact on economic growth, unemployment rates, and the Federal Reserve’s monetary policy decisions.
- Stronger-than-expected NFP: If job creation exceeds expectations, it indicates a strong U.S. economy. This increases demand for the U.S. dollar (USD), often causing it to appreciate against other currencies.
- Weaker-than-expected NFP: If job creation is lower than expected, it signals slowing economic growth and labor market weakness. This can weaken the USD, as it may lead to expansionary policies (such as interest rate cuts) by the Federal Reserve.
The NFP report often triggers high volatility in USD-related currency pairs such as EUR/USD, USD/JPY, and GBP/USD. Many traders adjust their trading strategies or avoid entering the market before the release of this report to protect themselves from unexpected price swings.
3. Inflation Rate (CPI) and Country-Specific Inflation Reports
Inflation is a key economic indicator that central banks closely monitor when making interest rate decisions.
- The Consumer Price Index (CPI) and Producer Price Index (PPI) measure the rate of inflation in a country.
- Higher-than-expected inflation: Central banks may raise interest rates to control inflation, which strengthens the currency.
- Lower-than-expected inflation: This may lead to currency depreciation as it signals weaker economic demand.
4. Gross Domestic Product (GDP)
Gross Domestic Product (GDP) measures a country’s economic growth and is released quarterly.
- Stronger-than-expected GDP growth: Indicates a robust economy and strengthens the currency.
- Weak GDP growth: Signals economic slowdown, which can lead to currency depreciation.
5. Trade Balance and Export-Import Data
Trade balance (Trade Balance) is a key economic indicator that reflects the difference between a country’s exports and imports. This metric directly impacts the national currency’s value.
How Does Trade Balance Affect Forex?
- Trade Surplus: If a country exports more than it imports, demand for its currency increases, strengthening its value.
- Trade Deficit: If imports exceed exports, more currency flows out of the country, reducing demand and weakening the currency.
Trade balance data is published monthly and significantly impacts major currency pairs such as EUR/USD, USD/JPY, and GBP/USD. Forex traders analyze this data to predict monetary policy trends, economic growth, and currency stability, adjusting their trading strategies accordingly.
Geopolitical News and Political Events Affecting the Forex Market
In addition to economic data, political and geopolitical developments can have a significant impact on the Forex market.
Elections and Government Changes
Presidential elections, parliamentary elections, or changes in government cabinets can greatly influence Forex markets.
For example, the U.S. elections often create high volatility in the value of the U.S. dollar (USD) because the economic policies of a new president can affect interest rates, taxation policies, and economic growth.
Wars and Geopolitical Tensions
Wars, terrorist attacks, sanctions, and international conflicts increase uncertainty in financial markets.
In such situations, investors tend to move their capital into safe-haven assets, such as gold (XAU/USD), the Japanese yen (JPY), and the Swiss franc (CHF) to protect their investments.
How to Use Forex News for Trading?
To maximize profits from Forex news while reducing risk, consider the following tips:
- Follow the Economic Calendar: Websites like Forex Factory and Investing.com display the schedule for major economic news releases.
- Avoid High-Risk Trades During Major News Events: If you lack experience, avoid trading during major events like NFP or Federal Reserve interest rate decisions.
- Use News-Based Trading Strategies: Some traders use scalping strategies and quick market reaction analysis to capitalize on news volatility.
- Apply Risk Management and Stop-Loss Orders: News events can cause extreme price fluctuations, so always set Stop Loss (SL) and Take Profit (TP) levels to manage risk effectively.
Best Forex News Websites – Persian and International Sources for Real-Time News and Market Analysis
Access to up-to-date Forex news and market analysis is one of the most critical success factors for traders. Currency fluctuations are influenced by economic events, central bank decisions, key economic indicators, and political developments. To obtain accurate information and professional analyses, it is essential to use reliable news sources. This article introduces the best Forex news websites, both Persian and international, that can help traders make informed trading decisions.
Best Persian Websites for Forex News
Iran Bourse Online is one of the most reputable Persian-language websites for Forex that provides daily news, technical and fundamental analyses, an economic calendar, real-time exchange rates, and educational materials. This site helps traders make better-informed decisions.
Forex Factory Persian is a localized version of the Forex Factory economic calendar, allowing Iranian traders to track the exact timing of major economic news releases. This site also provides insights into the impact of economic events on the market.
Amoozesh Bourse is another reliable Persian source covering news and analyses related to Forex, stocks, and cryptocurrencies. This website features comprehensive articles on the most important economic events impacting Forex, fundamental and technical analysis, and trading strategies.
ZBourse is a valuable resource for Iranian traders, offering Forex analysis, reviews of reliable brokers, and insights into various trading strategies. Additionally, this website includes articles evaluating top analytical platforms worldwide.
Best International Websites for Forex News
Forex Factory is one of the most popular news websites among professional Forex traders. This site provides a comprehensive economic calendar, macroeconomic analysis, and real-time financial news. Traders can filter news based on impact level and adjust their trading strategies accordingly.
Investing is a comprehensive platform for news and analysis related to Forex, stocks, commodities, and cryptocurrencies. This website offers technical and fundamental analyses of major currency pairs, live Forex rates, and economic forecasts.
DailyFX is one of the most trusted sources for Forex fundamental and technical analysis. This site publishes daily market insights and provides extensive coverage of central bank decisions. It also features educational content for beginner traders.
FXStreet is a dedicated Forex news website that offers real-time analysis, precise forecasts on currency trends, and trading signals. This site also includes analytical charts, an economic calendar, and trading tools that assist traders in making informed decisions.
Bloomberg is one of the world’s most reputable financial and economic media outlets, publishing news on global financial markets, central bank policies, and macroeconomic trends. This site provides detailed insights into the impact of major news on Forex, stock markets, and bonds.
Reuters is one of the largest global news agencies, offering extensive coverage of economic, political, and financial analysis. The news provided by Reuters significantly impacts investment and trading decisions in Forex, making it an excellent source for tracking changes in global monetary and fiscal policies.
TradingView is a comprehensive platform that, in addition to Forex news, provides advanced charting tools and technical analysis resources. This site allows traders to view professional user-generated analyses and compare different market trends.
Why Is Using Reliable News Sources Important in Forex?
The Forex market is highly influenced by economic news and central bank decisions. Traders who stay informed can make better trading decisions and take advantage of market fluctuations. Following economic news helps traders:
- Identify the best entry and exit points for trades
- Reduce trading risks
- Combine technical and fundamental analysis to develop more effective trading strategies
Forex News and Its Impact on Gold Prices
Gold is one of the most important and volatile assets in the Forex market, with its price highly influenced by economic news, central bank policies, inflation, and U.S. dollar fluctuations. Gold traders (XAU/USD) closely monitor economic reports to predict future movements of this precious metal.
Major News Events Affecting Gold Prices in Forex
1. Federal Reserve (Fed) and Central Bank Interest Rate Decisions
Interest rates play a crucial role in determining gold’s value. When the Federal Reserve or other central banks raise interest rates, gold comes under pressure, and its price declines. The reason is that gold does not generate interest income, making higher-yielding assets like bonds and savings accounts more attractive. Conversely, when central banks lower interest rates, gold becomes more appealing, and its price rises.
2. Inflation Rates and Consumer Price Index (CPI)
Gold is widely recognized as a safe-haven asset against inflation. When inflation rises, investors turn to gold to preserve their wealth. As a result, strong inflation data usually pushes gold prices higher, whereas lower-than-expected inflation can reduce gold demand.
3. U.S. Dollar Strength and DXY Index
Gold and the U.S. dollar (USD) have an inverse relationship. When the dollar strengthens, gold prices decrease because it becomes more expensive for foreign investors to buy gold. Conversely, when the dollar weakens, gold becomes more attractive, and its price increases. Traders should monitor the DXY index (U.S. Dollar Index) and economic news related to the U.S. economy to better predict gold price trends.
4. Geopolitical Events and Economic Crises
Political and economic events, such as wars, sanctions, international tensions, and financial crises, significantly impact gold prices. In times of uncertainty, investors seek refuge in gold as a safe-haven asset, which drives its price higher.
5. U.S. Non-Farm Payrolls (NFP) Report
The U.S. Non-Farm Payrolls (NFP) report is one of the most critical economic events that can substantially impact gold prices.
- Strong employment data increases the likelihood of Fed interest rate hikes, leading to gold price declines.
- Weak employment data may signal economic weakness, increasing gold demand and driving its price higher.
Traders looking to profit from Forex and gold market fluctuations should closely follow economic and political news from reliable sources. By combining fundamental analysis with technical analysis, traders can develop effective trading strategies that minimize risk and maximize potential returns.