Discussing the article: "Data Science and ML (Part 39): News + Artificial Intelligence, Would You Bet on it?"
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Check out the new article: Data Science and ML (Part 39): News + Artificial Intelligence, Would You Bet on it?.
News drives the financial markets, especially major releases like Non-Farm Payrolls (NFPs). We've all witnessed how a single headline can trigger sharp price movements. In this article, we dive into the powerful intersection of news data and Artificial Intelligence.
You've probably heard it: financial and forex markets are driven and impacted by the news also known as Non-Farm Payrolls (NFP). This is a true statement, as news describes ongoing events in the real world.
Trading news usually includes economic reports, corporate announcements, geopolitical events, and central bank communications. Often, when these news events occur (a few moments before or after) create volatility and trading opportunities across related assets and symbols.
Since news describes what's happening in the world in a specific region or country and their expected outcomes, they are one of the best predictors of financial markets. For example, on EURUSD, a rising CPI indicated on the Core CPI news for the EUR currency could result in a bullish EUR as it often increases expectations of tighter monetary policy (rate hikes) and could also lead to a bearish USD.
Unlike news such as corporate announcements and economic reports which can have an impact in either direction in the markets. Some news such as, natural disasters tends to negatively impact and disrupt forex markets and stocks mostly.
To become successful traders, we shouldn't rely too much on a technical aspect of the market, we should also be mindful of the news as they are one of the biggest drivers of financial markets.
Author: Omega J Msigwa