Forex news outcome forecast
Here are some examples of forex news outcomes and forecasts:
News: The European Central Bank (ECB) decides to keep interest rates unchanged at its monetary policy meeting.
Outcome: The EUR/USD pair falls by 0.5% to 1.1200 as investors had been expecting a rate cut.
Forecast: The market had been pricing in a 50% chance of a rate cut, so the decision to keep rates unchanged was seen as a surprise. The fall in the EUR/USD pair is due to the fact that a rate cut would have been seen as a sign of economic weakness, which would have boosted the value of the euro.
News: The US Federal Reserve announces a surprise rate hike at its monetary policy meeting.
Outcome: The USD/JPY pair rises by 1.2% to 110.50 as investors had been expecting a rate cut.
Forecast: The market had been pricing in a 75% chance of a rate cut, so the decision to hike rates was seen as a surprise. The rise in the USD/JPY pair is due to the fact that a rate hike is seen as a sign of economic strength, which would have boosted the value of the US dollar.
News: The UK government announces a new Brexit deal with the European Union.
Outcome: The GBP/USD pair rises by 1.5% to 1.3200 as investors had been expecting a no-deal Brexit.
Forecast: The market had been pricing in a 50% chance of a no-deal Brexit, so the announcement of a new deal was seen as a positive surprise. The rise in the GBP/USD pair is due to the fact that a deal would have reduced the uncertainty surrounding the UK's exit from the EU, which would have boosted the value of the pound.
News: The Chinese government announces a new stimulus package to boost the economy.
Outcome: The AUD/USD pair rises by 0.8% to 0.7200 as investors had been expecting a slower pace of economic growth.
Forecast: The market had been pricing in a 25% chance of a stimulus package, so the announcement was seen as a positive surprise. The rise in the AUD/USD pair is due to the fact that a stimulus package would have boosted the value of the Australian dollar, which is closely tied to the Chinese economy.
News: The US government announces a new trade deal with China.
Outcome: The USD/CNY pair falls by 0.5% to 7.10 as investors had been expecting a more comprehensive deal.
Forecast: The market had been pricing in a 75% chance of a more comprehensive deal, so the announcement was seen as a disappointment. The fall in the USD/CNY pair is due to the fact that a more comprehensive deal would have boosted the value of the US dollar, which would have reduced the trade deficit between the two countries.
These are just a few examples of how news outcomes and forecasts can affect the forex market. The key is to understand the market's expectations and how they are likely to be affected by the news.