What is Forex Factory? Forex Factory is an important fundamental news website in the world of foreign exchange trading. It brings together news, statistical data, and trading support tools in a professional and transparent manner. For both beginners and experts in the forex market, this website provides essential and valuable information. This article will help you better understand what Forex Factory is and how to use Forex Factory effectively!
What is Forex Factory?
Forex Factory is a financial information website specializing in the foreign exchange market. It was founded and operated by Fair Economy, Inc. in 2004. The website quickly became one of the most reputable sources of financial news and data in the world. It provides information on trading history, forecasts, and economic indicators from around the globe.
Forex Factory is also an in-depth discussion community for Forex traders, where they can exchange experiences, analyses, and opinions about the foreign exchange market. In addition, the website offers trading support tools such as exchange rate tables, pip calculators, and market charts. These features help traders gain a clear and comprehensive view of the forex market.
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How important is Forex Factory?
Forex Factory plays an important role in the foreign exchange market for several reasons:
- Forex Factory is a continuously updated source of information on global economic events. It helps traders quickly grasp market conditions.
- Forex Factory provides professional analytical tools that help traders analyze data, identify trends, and make more accurate trading decisions. This enables smarter and more effective trading.
- The online community of Forex Factory creates an environment for information sharing and experience exchange among traders. As a result, beginners can learn from experienced traders, while experts also have opportunities to stay updated with new information and discuss trading strategies.
- Forex Factory supports newcomers to the forex market by providing guides and educational materials, helping them master basic knowledge and develop their trading skills.
Main sections on Forex Factory
When traders access the Forex Factory homepage, they will see the main functional sections displayed at the top of the page, including:
- Forum: The Forex Factory forum
- Trades: The trading section
- News: The news section
- Calendar: The Forex Factory economic calendar
- Market: Markets
- Brokers: Brokers featured by Forex Factory
Top 5 Forex Factory calendar news that you should watch out for
Interest rate
Interest rates are one of the most important factors affecting the foreign exchange market. Forex Factory provides detailed information on interest rates set by central banks around the world. Interest rate decisions can cause strong volatility in currency pairs, and monitoring them is essential for any trader.
GDP (Gross domestic product)
GDP is an indicator that measures the size of a country’s economy. Changes in GDP can influence the value of that country’s currency. Forex Factory provides comprehensive and up-to-date GDP data, helping traders accurately assess the economic health of different countries.
CPI (Consumer price index)
The Consumer Price Index (CPI) measures changes in the price level of a basket of consumer goods and services. It is one of the most important indicators used to evaluate inflation in an economy. Forex Factory provides CPI data from many countries, enabling traders to track inflation trends effectively.
CCI (Consumer confidence index)
The Consumer Confidence Index (CCI) reflects consumers’ sentiment and their level of optimism or pessimism about the current and future economic situation. Changes in CCI can affect consumer spending trends and overall economic conditions. Forex Factory offers complete and accurate CCI data, helping traders understand market sentiment and shape their trading strategies.
PPI (Producer price index)
The Producer Price Index (PPI) measures changes in prices during the production process. It reflects production costs at factories, mines, and farms before products reach consumers. PPI is an important tool for assessing inflationary pressure and changes in production costs. Forex Factory provides comprehensive and regularly updated PPI information from many countries, helping traders gain deeper insights into global economic conditions.
Forex Factory: News analysis guide
If you have read this far, you may already understand what Forex Factory news is. In this section, you will learn the key points of the “Forex Factory news analysis guide”, including:
How to view the economic calendar on Forex Factory
Forex Factory news: Which news has the greatest impact on currency pair prices? These are classified as the news items that should be checked first. Forex Factory categorizes the importance of Forex news on both the Calendar and News pages into four color-coded levels indicating their impact:
- Red (high impact): Important news with a strong influence on the forex market, such as speeches and interest rate announcements.
- Orange (medium impact): News with a moderate level of importance and a moderate impact on the market.
- Yellow (low impact): News with a weak and insignificant impact on the market.
- Yellow (non-economic): News that has little to no impact on the market.
Correlation analysis between Forex Factory news and currency pairs
On the Forex Factory website, the currency pairs affected by news are displayed – but how important are they? In this section, we will explain the relationship between Forex Factory news and currency pairs. This is highly useful for analyzing prices and future trends. The details are as follows:
- Impact on currency pairs: the base currency
- Impact on currency pairs: the quote currency
Impact of Forex news on currency pairs: Base currency
- If the Actual figure is higher than the Forecast, it means there is a higher chance that the price will increase.
- If the Actual figure is lower than the Forecast, it means there is a higher chance that the price will decrease.
Impact of Forex news on currency pairs: Quote currency
- If the Actual figure is higher than the Forecast, it means there is a higher chance that the price will decrease.
- If the Actual figure is lower than the Forecast, it means there is a higher chance that the price will increase.
Summary table of the correlation between Forex Factory news and currency pairs:
| Forex News | Impact on the Currency Pair |
|---|---|
| The currency pair’s Base Currency | Actual higher than Forecast → High chance the price will rise |
| Actual lower than Forecast → High chance the price will fall | |
| The currency pair’s Quote Currency | Actual higher than Forecast → High chance the price will fall |
| Actual lower than Forecast → High chance the price will rise |
Forex Factory: Key components of the economic calendar
Navigation
Traders can choose the time period to view the economic calendar. You can choose specific dates or use suggestions like today, tomorrow, this week, last week, next month, etc.
Filter
Filter is a feature that allows you to filter the types of Forex Factory news you want to know about. By clicking on “Filter,” you can then adjust according to your needs. For example, adjusting the USD news indicator or the indicator for the most impactful news (red color).
News details in the economic calendar Forex Factory
Date is the day the news is released.
Time is the time the news is released. (You can adjust the time zone by clicking on “Time” in the top-right corner, then selecting (GMT +7:00) Hanoi, Bangkok, Jakarta.)
- Gray numbers indicate that the news has already been released.
- A green icon in front of the number indicates that the news is the next upcoming release.
Currency refers to the currency related to the news.
Impact shows the importance level of the news, as described in the previous section.
Detailed news information in the Forex Factory news calendar
Detail refers to the detailed news item that can be clicked to view additional content such as economic data, the news source, and preliminary assessments.
Actual is the figure that has just been released.
Forecast is the predicted figure.
Previous is the previously released figure, for example, from the previous month.
Graph shows the trend chart.
Conclusion
Forex Factory is one of the indispensable tools for Forex traders, from beginners to professionals. With continuously updated important news and economic indicators such as Interest Rates, GDP, PPI, CPI, and CCI, it helps traders accurately assess market conditions and make more informed trading decisions. Hopefully, traders now have a clear understanding of what is Forex Factory as introduced above.
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