Positive Signs for Europe, less so for China
Two of the biggest pieces of online forex trading news that emerged this week and caught the attention of traders from all around the world had their origins in Europe and China.
As all good forex traders know, the key to making profits in the currencies markets is accurately predicting movements in price in advance.
These two pieces of important news strongly suggest that there will be movements in price within some of the major global currencies (such as the Euro and Renminbi).
Strong German Unemployment Figures
The first piece of pertinent news for online forex traders was the announcement by Germany that their unemployment figures had fallen by even more than was expected. A fall of around 7,500 in terms of people counting as unemployed in the German economy was expected, yet the actual fall posted was double that at approximately 12,000.
Since Germany has the most important economy in the Eurozone this is yet another key signal that the Euro may rebound in the coming weeks and months to regain some of the value it has lost in recent months and years.
Chinese Manufacturing Hits 8 Month Low
Less positive yet still extremely relevant news for forex traders emerged from China this past week with the Chinese government announcing that its manufacturing sector had not rebounded as hoped and had its lowest output in over half a year.
This follows on from other disappointing economic news that has emerged from the Chinese economy in recent months. The key takeaway for traders is that currencies heavily dependent on trade with China may be more affected than other countries who are less dependent. This could result in movements between these currencies and give traders opportunities to capitalize on these movements.
