Markets are influenced by multiple factors. The major ones are economic, financial and political factors. News can change a market situation in a moment. If the news is positive currency rates or stock prices usually go up. If the news is negative they go down. So which news should a trader follow?
- 1 Economic releases and economic news
- 2 Financial news
- 3 Political news
- 4 Unforeseen events
- 5 Trade economic news on the IQ Option Platform
- 6 How to trade political news on the IQ Option platform
- 7 How to trade financial news on the IQ Option Platform
- 8 Earnings calendar at IQ Option
Economic releases and economic news
The first point of interest is economic releases or economic news. These are publications of various economic reports and statistics such as:
- gross domestic product,
- interest rates,
- retail sales,
- and other data.
Financial news represented by financial reports from companies largely affects stock prices. If financial figures are better than the forecast a company's share price usually goes up. If a company's financial figures are worse than the forecast. Its shares decrease in value.
A country's health is affected by political events:
- death of political leaders,
- and other events that may cause political instability.
So it's important to follow political news.
Some unexpected events such as terrorist attacks or natural disasters like earthquakes, tsunamis or drought influenced markets too.
Keep in mind that the market's reaction to a news release usually lasts from 30 minutes up to two hours. But sometimes it can last for three to four days.
You can follow our smart news feed that accumulates news from multiple sources in the market analysis section on the left-hand side panel. In order not to miss the most important releases. Scan an economic calendar on IQ Option platform or at IQ Option Wiki calendar section.
Trade economic news on the IQ Option Platform
Most important economic news and releases
Economic releases are publications of various economic reports and statistics. Such as gross domestic product, unemployment, inflation or interest rates, retail sales, industrial production index, trade balance and other surveys and data of great importance are announcements made by key representatives of major national financial institutions.
For example the Federal Reserve or the Department of the Treasury in the USA or the Bank of England in Great Britain. Let's take an example.
Example of news impact
On the 13th of June 2018 the US Federal Reserve raised its key interest rates by 25 basis points from 1.75 percent to 2 percent. As a result the dollar strengthened against the emerging market currencies and hit a three week high against the Japanese Yen following the Fed announcement.
A trader could make a profit by buying the US dollar and selling the Japanese yen (USDJPY) on IQ Option platform. The news feed is available in the market analysis section on the left-hand side panel.
In order to follow the economic news and releases use the forex calendar in the same section. At IQ Option Wiki you can also read about other types of important news you can use in trading.
How to trade political news on the IQ Option platform
Politics affect a country's economy and as a consequence has a major impact on its currency. The most important political events that can affect the economy are:
- death of political leaders etc.
In other words, everything that may cause political instability. It's very important to follow political news if you trade currencies at IQ Option.
Brexit referendum as a political news
Let's study an example. On the twenty-third of June 2016 the Brexit referendum took place in the UK as a result the British vote impacted both Britain's economy and the British pound. The UK's currency dropped 10 percent against the dollar and reached its 31 year low overnight after the vote. Traders were selling the pound while investing in stronger currencies.
Some unexpected events not necessarily political ones may influence markets too. These may include terrorist attacks or natural disasters like earthquakes tsunamis or droughts.
Remember that a market reaction to unexpected breaking news is usually stronger than to scheduled data releases.
How to trade financial news on the IQ Option Platform
What is financial news?
Financial News is an important factor that influences a market situation. Publicly traded companies are required to publish various financial reports. That contain important financial data such as:
- net income,
- earnings per share,
- cash flows etc.
This information influences a company's stock price a lot. It's important to follow quarterly and annual reports in order to successfully trade stocks at IQ Option. In general, if the basic figures are better than the forecast a company's shares increase in value. If the report is below the market expectations a company's shares decline.
Q2 2018 financial report and its influence on stock price
Let's take an example. Google's parent Alphabet published quarter 2 results. Its revenue in quarter 2 grew by 21 percent compared to the second quarter last year and amounted to 26 billion dollars. The company's financial results beat market expectations following the news. The shares of Alphabet rose by five point three percent. And reached an all-time high of one thousand two hundred seventy-five dollars.
Earnings calendar at IQ Option
In order not to miss the most important financial figures scan an earnings calendar. On IQ Option platform the earnings calendar is located in the market analysis section on the left-hand side panel. Find here instructions on how to use the earnings calendar at IQ Option.
Have a nice trading experience with IQ Option.
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