Economic calendar
The Economic Calendar provides traders with information on upcoming events that could have an impact on the foreign currency market. Each event is categorized by relevance to the currency in question. Custom forex economic calendars can be created to filter events by currency and relevance. You can also filter events by currency to see if they affect specific currencies.
Currency traders should monitor the economic calendar every day. This will help them know what economic events could cause volatility in the market. These events can be anything from an NFP report to a US Federal Reserve news release. These economic events can influence central bank decisions and interest rate spikes.
Purchasing power parity
Purchasing power parity is a theoretical measure that is commonly used by economists to compare rates between two nations. However, in real life, this metric does not provide accurate predictions. Instead, it is used mainly to compare standards of living, rather than to predict currency prices.
To calculate PPP, first, take the PPP rate of one currency and convert it to the currency of another. Then, divide the rate by 100 to find the value of each currency. This way, you can calculate the value of a currency pair over a short period of time.
Convolutional neural network
The Convolutional neural network is a neural network that is trained on a sequence of inputs. The inputs are vectors, which represent different types of data. The network processes each input value using a bias vector and weight matrix. The weight varies according to the inputs, while bias is a factor that helps the model fit a given set of data.
The foreign exchange market is the world’s largest financial market with a volume of over three trillion US dollars each day. The price trend of this market directly affects the economic interests of investors. It is also an important determinant of national macroeconomic policies. Therefore, an accurate forecast of the price and trend is of great importance for economic development.
Expert polls
The Reuters polls are available on Refinitiv’s premium products and offer a comprehensive analysis of the relative accuracy of forecasts and expert polls. These polls are conducted regularly, and present the broadest view of leading forecasters. Because of the fact that these polls are conducted on the snapshot-based basis, the results of each poll are able to be traced to a specific point in time.
The Forecast Poll highlights the near-term and medium-term price expectations of leading market experts. It is a five-year-old survey conducted every Friday at 15:00 GMT. Each poll contains an average price estimate for a certain time horizon, and also highlights the most prominent traders’ views.
Technical analysis
Technical analysis can be used to predict short-term market movements. It uses information from the past to predict the future. If the forecast is correct, it can help investors focus on market direction. By evaluating historical data, traders can better predict market trends. In addition to predicting short-term market movements, technical analysis can help traders make more informed decisions.
Forex traders use technical analysis to determine the direction of currency exchange rates. They use statistics and charts to identify significant levels, current trends, potential reversals, and optimal targets. Technical indicators are subject to rigorous rules of math, which makes them easy to use. The data used in backtesting is almost identical to that used by others.
Sentiment analysis
Sentiment analysis is a powerful tool for predicting currency prices. It uses data from past market conditions to make forecasts based on general market sentiment. Typically, periods of bullishness and bearishness will lead to market sell-offs, while periods of low sentiment are often signs that the market has bottomed.
However, it is extremely imperative to note that this method only works well when combined with other forms of analysis. Fundamentals are important in determining price direction, but sentiment can override them in the short term. Extreme sentiment readings will likely occur at turning points.