Forex Trading News
Forex Trading News
The forex market is driven by many factors. From market participants to economic data released by the state. Well for the release of economic data or news releases can provide good opportunities for the right trader and able to interpret the data.
From the perspective of all fundamental analysts, news relating to macroeconomic information is the driver of currency values and can be considered the most important information. Examples are interest rate policy, GDP data and employment figures. Perhaps the most famous news release, which affects almost every currency pair globally, occurs on the first Friday of every month ie non-farm payroll data. For traders who have information on whether this news release plan will be positive or negative provides a good opportunity to make short-term profitable trading as the market will fluctuate up or down.
Another form of trading news opportunities available to forex traders is the spontaneous release of information based on geopolitical events. The latest is the North Korean threat to attack US military base in Guam. Announcements about conflicts, trade embargoes and commodity price spikes all have a strong driving effect for the currency pair.
Any news that may be deemed to limit the flow of currency exchange in the short term, such as trade restrictions, will have a negative impact on the currency of the region or country involved. Similarly, there are some currencies such as the US dollar that is seen as a safe-haven currency (the currency least likely to collapse if the market weakens) and will benefit from increasing demand when there is a period of global instability or conflict.
Trading news strategy
There are several trading methods when news releases will benefit traders. For traders who want profit in the long term, they will seek the currency of a healthy economy and keep interest rates high (to avoid inflation) to ensure the medium-term demand of this currency against currencies with lower interest rates. Typically, these currencies can be traded profitable after news releases when market fluctuations have subsided and long-term trends have been seen.
However, for those who want to trade quickly, or as soon as this news release enters the market, there are also a number of ways to profit from the usual big fluctuations within minutes after the market reacts. One way is to just take a position based on previous research by using a stop-loss large enough to maintain temporary fluctuations in your position. Another way to try is to wait for fluctuations to subside ten minutes after the release of the data.
For traders who easily panic see price fluctuations due to news or data releases, you should wait until you see the real direction.