How to Understand the News?

Posted by: | Posted on 10:48:00 PM | Post Categories

We can help you to understand some basic things.
First we will look at the formula.

Halifax HPI m / m The formula for this news is:
Actual> Forecast = Good for currency

Now we will know what is Actual, Forecast and Previous?


See in this screenshot Previous 0.2%. This means that earlier when the news was published, the actual result was 0.2%.
Forecast means that the idea is that the result of the news can come to 0.5%. And Actual is the result that will come this time.
The result that will come in Actual this time, will be considered as Previous in the next news.

Now we come back to our formula. Here it is said, Actual> Forecast = Good for currency.
This is GBP news. Therefore, if the result of this year's Actual is higher than Forecast (0.5%), it is good for GBP.
And if Actual's results are bad from Forecast, it's bad for GBP.

Here comes Actual -1.2%. Therefore Actual <Forecast. So Bad for currency (GBP).
So, this formula will work here,

Actual> Forecast = Good for currency
Actual <Forecast = Bad for currency

Here, the bad news for GBP is the GBP's bad for currency. So it will have an effect on GBP pairs. For example, GBPUSD may fall, EURGBP may rise, and so on. But not always the effect of the news, but often the opposite effect.

   

 


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