Trading On Forex News.
One of the key elements of understanding the movement of currency pairs in Forex is the work on the news. Skill to work on the news is very significant both for the novice trader and for the experienced speculator, who seeks to improve his skills.
Composing a trading strategy on a daily basis, a trader has to analyze the news calendar for the following trading period. In order for trading on Forex news will be successful, you must:
– Know the rough time period when we can expect outlet of strong news;
– Realize how the market works when news are published and how it is possible to profit by working in the market;
– Connect news and technical analysis.
You have to understand what data impact more actively the market, and what – no. It’s easy enough. Trade practice, which was being formed during many years, points that it has already formed a number of economic factors that have a significant impact on the movement of exchange rates. Here are just some of them:
• Decisions of central banks according to interest rates.
• The level of inflation.
• GDP and industrial production.
• The index of business activity.
• Statements of financial officers of any country (largely it is influenced by high-ranking public persons of the U.S., UK and EU states, Japan, Switzerland and Canada).
Unsuspected news is published extremely seldom on the Forex market. Typically all the news coming out on the market is planned. Currency market waits the outlet of the news and lays itself out to prepare for them. Prior to the news is released officially, experts publish their predictions on the possible behavior of exchange rates.
A possible reaction of the market to news coming out can look like this:
• If the news has met the expectations, the rate of a currency will not change dramatically.
• If the Forex analysts gave the correct prognosis, but the consequences of the market’s behavior were not fully appreciated, the rate will continue to move in a given direction, but it can be overseen an increase in currency movements.
• If the Forex – experts made wrong [spin]predictions, the exchange rate will alter its direction and begin moving in the opposite direction.
Analyzing how the fundamentals affect the exchange rates, be sure to take into account the trend.
If the news that has come out is against the trend, it suggests that the influence of such news will not last long, and will last only a few hours.
If the news absolutely coincides with the prevailing trend, it suggests that the trend will accelerate.
When the news of Forex market is published, it should be remembered that using the fundamental basics of analysis, the maximum profit can be extracted only if these data are combined with data of technical analysis.
Today people are searching for additional or even primary sources of income as never. World economy is still in tough condition, and to find a well-paid job is quite hard. And forex is one of the ways to earn some money. To trade successfully one has to be aware of events on the market, so forex news is of great help here. Those who don’t know where to receive forex market news can use the online network. Just type “forex news trading“, for example, in Google or other search engine and you will get many news sources to choose from.