The Importance of Key Economic Data
Economic data can impact traded instruments and asset classes across your portfolio. Educate yourself about the key currency trading indicators and understand how they provide insight into the state of a country’s economy – leading to changes in price and influencing your trading strategy.
Have you ever been trading an instrument when the price suddenly spiked in one direction?
If you were lucky, the spike went in your favour and you were able to profit from it. If you weren’t so lucky, it’s possible that the price spiked back through your stop-loss and you were thrown out of your trade.
There are several reasons why spike might have happened. In many cases, spikes occur when key economic data are released.
You may be thinking ‘if only I knew exactly when announcements were about to happen, I could position my trades accordingly.’ Quite right – and you can.
Most economic announcemen