The figure shows how much oil and product is available in storage. The indicator gives an overview of US petroleum demand. If the increase in crude inventories is more than expected, it implies weaker demand and is bearish for crude prices. The same can be said if a decline in inventories is less than expected. If the increase in crude is less than expected, it implies greater demand and is bullish for crude prices.

The same can be said if a decline in inventories is more than expected. The Australian Manufacturing Purchasing Managers Index PMI measures the activity level of purchasing managers in the manufacturing sector. A reading above 50 indicates expansion in the sector; below indicates contraction. The Australian Services Purchasing Managers Index PMI measures the activity level of purchasing managers in the services sector.

The report is based on surveys of over business executives in private sector services companies. Each response is weighted according to the size of the company and its contribution to total manufacturing or services output accounted for by the sub-sector to which that company belongs. Replies from larger companies have a greater impact on the final index numbers than those from small companies.

Results are presented by question asked, showing the percentage of respondents reporting an improvement, deterioration or no change since the previous month. From these percentages, an index is derived: a level of Gross Domestic Product GDP measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy. It is the broadest measure of economic activity and the primary indicator of the economy's health.

A statistical measurement and economic indicator of the overall health of the economy as determined by consumer opinion. Consumer sentiment takes into accountan individual's feelings toward his or her own current financial health, the health of the economy in the short term and the prospects for longer term economic growth.

The Reserve Bank of New Zealand RBNZ governor decides where to set the rate after consulting senior bank staff and external advisers. Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation. The Reserve Bank of New Zealand's RBNZ quarterly Monetary Policy Statement outlines how the bank will achieve its inflation targets, how it proposes to formulate and implement monetary policy during the next five years and how monetary policy has been implemented since the last statement's release.

The Reserve Bank of New Zealand's rate statement is the primary tool the panel uses to communicate with investors about monetary policy. It contains the outcome of the vote on interest rates, discusses the economic outlook and offers clues on the outcome of future votes. The Reserve Bank of New Zealand RBNZ press conference looks at the factors that affected the most recent interest rate decision, the overall economic outlook, inflation and offers insights into future monetary policy decisions.

Monetary aggregates, known also as "money supply", is the quantity of currency available within the economy to purchase goods and services. Depending on the degree of liquidity chosen to define an asset as money, various monetary aggregates are distinguished: M0, M1, M2, M3, M4, etc. Not all of them are used by every country. Note that methodology of calculating money supply varies between countries. M2 is a monetary aggregate that includes all physical currency circulating in the economy banknotes and coins , operational deposits in central bank, money in current accounts, saving accounts, money market deposits and small certificates of deposit.

Excess money supply growth potentially can cause inflation and generate fears that the government may tighten money growth by allowing the interest rates to rise which in turn, lowers future prices. Exports of goods and services consist of transactions in goods and services sales, barter, gifts or grants from residents to non-residents. A function of international trade whereby goods produced in one country are shipped to another country for future sale or trade.

The sale of such goods addsto the producing nation's gross output. If used for trade, exports are exchangedfor other products or services. Exports are one of the oldest forms of economic transfer, and occur on a large scale between nations that have fewer restrictions on trade, such as tariffs or subsidies. Imports of goods and services consist of transactions in goods and services purchases, barter, gifts or grants from non-residents to residents.

A good or service brought into one country from another. Along with exports, imports form the backbone of international trade. The higher the value of imports entering a country, compared to the value of exports, the more negative that country's balance of trade becomes.

In order for the trade balance to be consistent with the definition of balance of payments, statistical modifications have been made to exclude some customs items for the transactions carried out among the residents. Such items include: goods granted embassy privilege; goods with no change of ownership, e. Adjustments are as well made to include goods actually imported and exported but did not undergo customs declaration such as military goods, electrical appliances and commercial aircrafts.

The Consumer Price Index CPI measures the change in the price of goods and services from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation. The impact on the currency may go both ways, a rise in CPI may lead to a rise in interest rates and a rise in local currency, on the other hand, during recession, a rise in CPI may lead to a deepened recession and therefore a fall in local currency. The deficit or surplus is defined as revenue plus grants received less expenditure less lending minus repayments.

Surplus refers to the excess of total government revenues over total expenditures while deficit refers to the excess of total government expenditures over total revenues. C2 stands for ""Credit from domestic sources in NOK and foreign currency, ie "the indicator of gross domestic debt for the non-financial private sector and municipalities in NOK and foreign currency".

After the event, the price generally breaks-out of the channel in either direction and whipsaws or trends until a new equilibrium is found.

In doing so the price crosses some or all of the grid levels. Carry trading has the potential to generate cash flow over the long term.

This ebook explains step by step how to create your own carry trading strategy. It explains the basics to advanced concepts such as hedging and arbitrage. There are several grid configurations that can work in this scenario.

Single-up grid: This is a trend follower. Trades are opened in the direction of the trend. This configuration works well when an event results in a single, directional movement either upwards or downwards.

In this setup, the opposing grid levels act as stop losses. So having all your grid levels triggered would effectively cause you to be stopped out. The grid is hedged, and has a fixed downside limit, but an unlimited upside. Single-down grid: This configuration trades against the trend.

That is, it buys in a falling market, and sells in a rising market. This setup can work well when volatility is high and whipsaw price action is expected. This grid has a limited upside, but an unlimited downside risk. The single up system reaches its maximum loss when all trades within the grid execute. When all trades in the single down grid execute, the system reaches its maximum profit potential.

See Table 1. Basically, the rule for trading news events is this: If high volatility is expected, use the single down grid. Otherwise use the single up grid. The single down grid is a clear winner in highly volatile situations. This is because it reaches its maximum profit potential when the price crosses the grid at all levels and all trades are executed see Table 1 above. Dual grid: One other option is to run the two grids simultaneously to create a dual system. That means managing the overall stops and take profits on both sides.

This can be useful under certain conditions, but it needs more complex trade management. Wide stop losses can be put in for good measure. With the single up grid, closing trades separately is risky because it can leave you unhedged. The most efficient way to work is to have an overall stop loss and take profit target for the grid. At either of those points, all trades are closed and the profit or loss is realized.

This makes the trade management much simpler. It just means watching two numbers. The average entry rates on your buy and sell side. The average entry rate is updated iteratively each time a level on the grid is reached and a new trade is executed:.

This simple trade management means you have the option to run either or both grids by hand. The single up grid, which is hedged by design, has a fixed downside risk. This is set by the number of grid levels used, and the interval between each of those levels. Where L is the number of grid levels on both sides, and S is the gap in pips between each level. So in the example above, a single up grid with 3 levels above and below the start point, and a gap of 10 pips, has a maximum potential loss of:.

How do you decide when to start the grid? Creating an algorithmic indicator for this arrangement is fairly easy. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy. Compare Accounts. Advertiser Disclosure ×. The offers that appear in this table are from partnerships from which Investopedia receives compensation.

This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. Related Articles. Economics What Is a Currency Crisis? Economics What Is a Currency War and How Does It Work? Economics Top 5 Ways Terrorism Impacts the Economy. Economy The Top 25 Economies in the World. Partner Links. Related Terms. What Is Mercantilism? Mercantilism was the primary economic system of trade between the 16th and the 18th centuries with theorists believing that the amount of wealth in the world was static.

What Is Crude Oil and Why It's Important to Investors Crude oil is a naturally occurring, unrefined petroleum product composed of hydrocarbon deposits and other organic materials. Gross Domestic Product GDP : Formula and How to Use It Gross domestic product is the monetary value of all finished goods and services made within a country during a specific period.

Economics Defined with Types, Indicators, and Systems Economics is a branch of social science focused on the production, distribution, and consumption of goods and services. Managed Currency A managed currency is one whose value and exchange rate are affected by the intervention of a central bank. Currency Convertibility Currency convertibility is the degree to which a country's domestic money can be converted into another currency or gold.

Facebook Instagram LinkedIn Newsletter Twitter. About Us Terms of Use Dictionary Editorial Policy Advertise News Privacy Policy Contact Us Careers California Privacy Notice.

The foreign exchange or forex market is the biggest and most active financial market in the world. Every day, participants from all over the world engage in trillions worth of foreign exchange transactions. Below, we'll discuss a few typical global events that may influence the forex market.

A political election — a common event in almost every nation — can have a large impact on a country's currency. Elections can be viewed by traders as an isolated case of potential political instability and uncertainty, which typically equates to greater volatility in the value of a country's currency. In most situations, forex participants will simply keep an eye on pre-election polls to get a sense of what to expect and see if there will be any changes at the top.

That's because a change in government can mean a change in ideology for the country's citizens, which usually equates to a different approach to monetary or fiscal policy , each serving as big drivers of a currency's value. Additionally, political parties or individuals who are seen as more fiscally responsible or concerned with promoting economic growth tend to boost a currency's relative value. For instance, an incumbent who is seen as a "pro economy" that is in danger of losing their position of power may lead to currency drops for fears of limited future economic growth and predictability.

Another circumstance of great importance is an unexpected election. Whether it comes via a non-confidence vote, corruption scandals, or other situations, unplanned elections can wreak havoc on a currency. For example, cases of upheaval among citizens that result in protests or work stoppages can cause great uncertainty in countries and increased political instability.

Even in cases where an autocratic government is being challenged in favor of a new, more democratic, and economically open-minded government, forex traders don't like the uncertainty. Political instability has a tendency to outweigh any positive outcomes from a new government in the short run , and related currencies will usually suffer losses. However, basic valuation factors and principals will once again apply, and currencies should settle at or around a rate indicative of the country's economic growth prospects over the long term.

The fallout from a natural disaster can be catastrophic for a country. Earthquakes, floods, tornadoes, and hurricanes harm a country's citizens, morale, and infrastructure. Additionally, such disasters will also have a negative effect on a nation's currency.

The loss of life, damage to major factories and distribution centers, coupled with the uncertainty that inevitably comes with natural disasters, are all bad news for a currency. Infrastructure damage is also a key concern when it comes to the impact of natural disasters. The fact that basic infrastructure is the backbone of any economy breaks in that infrastructure can severely limit the economic output of a region.

Furthermore, the additional costs that are incurred to clean up and rebuild after a disaster take away from government and private spending that could have been used towards economically advantageous ventures, rather than towards patching up a break in the value chain from damages in infrastructure.

Add to this a probable decrease in consumer spending due to the economic uncertainty and a possible loss of consumer confidence , and any economic strengths can be turned into economic weaknesses. In all, a natural disaster will almost surely negatively affect a nation's currency. Unlike a currency war, wherein countries actively attempt to devalue their currencies to aide their domestic economies in global export trading, a physical war can be far more devastating to a country's economy.

Much like a natural disaster, the impact of war is brutal and widespread. Similar to disasters, the damage of war to infrastructure deals a huge blow to a nation's short-term economic viability, costing citizens and governments billions of dollars. History has shown than war rebuilding efforts must often be financed with cheap capital resulting from lower interest rates , which inevitably decrease the value of domestic currency.

There is also a huge level of uncertainty surrounding such conflicts on future economic expectations and the health of affected nations. Thus, nations that are actively at war experience a higher level of currency volatility compared to those not engaged in conflict. That said, some economists believe that there is a potential economic upside to war. War can kick-start a fledgling economy, especially its manufacturing base when it is forced to concentrate its efforts on war time production.

For instance, the U. entry into World War II following the attacks on Pearl Harbor helped pull the country out of the grips of the Great Depression. While there is some historical precedent for this viewpoint, most would agree that an improved economy at the cost of human lives is a very poor trade-off.

Political turmoil, natural disasters, and war are just a few events that can have a profound effect on the currency markets. A great deal of a currency's value is derived from the economic strength of a nation, and any unforeseen uncertainty to future economic forecasts will typically not work in a currency's favor.

While it is very difficult to plan for the unexpected in the forex market, an informed trader will use global events as a primary indicator within a comprehensive trading strategy. Company News Markets News Cryptocurrency News Personal Finance News Economic News Government News. Your Money. Personal Finance. Your Practice. Popular Courses. Article Sources. Investopedia requires writers to use primary sources to support their work.

These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy. Compare Accounts. Advertiser Disclosure ×. The offers that appear in this table are from partnerships from which Investopedia receives compensation.

This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. Related Articles. Economics What Is a Currency Crisis? Economics What Is a Currency War and How Does It Work? Economics Top 5 Ways Terrorism Impacts the Economy. Economy The Top 25 Economies in the World. Partner Links.

Related Terms. What Is Mercantilism? Mercantilism was the primary economic system of trade between the 16th and the 18th centuries with theorists believing that the amount of wealth in the world was static. What Is Crude Oil and Why It's Important to Investors Crude oil is a naturally occurring, unrefined petroleum product composed of hydrocarbon deposits and other organic materials. Gross Domestic Product GDP : Formula and How to Use It Gross domestic product is the monetary value of all finished goods and services made within a country during a specific period.

Economics Defined with Types, Indicators, and Systems Economics is a branch of social science focused on the production, distribution, and consumption of goods and services. Managed Currency A managed currency is one whose value and exchange rate are affected by the intervention of a central bank. Currency Convertibility Currency convertibility is the degree to which a country's domestic money can be converted into another currency or gold.

Facebook Instagram LinkedIn Newsletter Twitter. About Us Terms of Use Dictionary Editorial Policy Advertise News Privacy Policy Contact Us Careers California Privacy Notice. Investopedia is part of the Dotdash Meredith publishing family. Dialog Heading.

That means managing the overall stops and take profits on both sides. There are standard indicators that can help you pick up this sort of contracting volatility channel. Another circumstance of great importance is an unexpected election. M2 is a monetary aggregate that includes all physical currency circulating in the economy banknotes and coins , operational deposits in central bank, money in current accounts, saving accounts, money market deposits and small certificates of deposit. Tuesday, 22 November, Also today i requested withdrawal of usd because this max for this offer and after 1 hour I received 95usdt to my tether wallet The spreadsheet enables testing against either real or simulated data.

Categories:

• Binary Options online
• Forex Brokers
• Forex Bitcoin
• Forex
• Binary Options