Overview of Forex Trading with News
Overview of Forex Trading with News
One of the biggest profits from forex trading is its trading hours, where the market is open 24 hours a day.
And as we know, news about economic reports has a tendency to be the main mobility. Of course for short-term movements in each market. This is an answer not only to American economic reports or news, but also from other parts of the world.
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There are eight main pairs available to almost every broker anywhere in the world. There are more than 17 types of derivatives, there are always economic reports that the trader will wait to decide what transactions to take.
In general, no fewer than seven economic reports are released per day. This release is eight pairs of countries that indeed become the benchmark of the world economy. So for those who choose forex trading using news, there are many opportunities that arise.
Let’s see which economic reports will be released and when, which are most relevant to the forex market movements.
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Which pair should be your focus in forex trading?
What is definitely the eighth pair of the world is usually:
1. US Dollar (USD)
2. Euro (EUR)
3. British Pound (GBP)
4. Japanese Yen (JPY)
5. Swiss Franc (CHF)
6. Canadian Dollar (CAD)
7. Australian Dollar (AUD)
8. New Zealand Dollar (NZD)
Pair pairs in forex trading consist of the combination above. These pairs usually have above-average liquidity. And that is what makes opportunities great. Forex pairs can be easily transacted throughout the world. This means you can choose which pair of pairs you will trade. Likewise, which country’s economic reports should be the main concern.
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Forex trading using real news is harder than it sounds. Not only because consensus numbers or market agreements are important figures. However, the prediction and revision numbers are also important figures. Also, some types of reports are more important than other reports. This can be measured by the significance of which country releases the report and the importance of the report. Of course in conjunction with other reports released at the same time.
When will the economic report be released?
The following is a list of times that are most often used to release important economic reports. But there are also certain times that should concern you if you are going to trade using the news.
When you want to trade forex using news as a reference. So the first time you should know is the release schedule and what to expect from the report. And you also have to know which reports have an important role. And perhaps the most important is the consensus figure.
This consensus figure is usually used as a benchmark whether the report is in accordance with market expectations or not. Generally if the report succeeds in defeating consensus, the market will move bullish. And if the report turns out to be below the consensus the market will usually have a bearish tendency.
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In general, the following are the most important economic reports of a country:
- Interest rate decision
- Retail sales
- Inflation, both consumer price and producer price index
- Unemployment rate
- Industrial production
- Business sentiment survey
- Survey the level of consumer confidence
- Trade balance
- Survey of the manufacturing sector
Again, I often say that the trade based on news effects is:
- Prices will move first before the report is released
- Will move when the report is released
- Prices move after the report is released