Forex Trading

A higher-than-expected reading is bullish for the stock market but bearish for the bond market, and the opposite is true. When the index is greater than expected, it bodes well for the stock market because it indicates healthy economic growth, which translates to higher corporate profits. By monitoring the ISM manufacturing index, investors can better understand national economic trends and conditions....

Risk-off, is defined by negative reports from central banks, corporate earnings reflect a poor outlook and market commentary is less than positive. Traders can also look for signs in macroeconomic data, for example, how central banks are responding to rising or low inflation, could be a sign of changing sentiment. During risk-on periods, investors tend to invest in higher-risk instruments, such as...