Abstract:Trading based on such as Forex News Releases can be beneficial as traders can stay informed and will not be carelessly taking decisions. Based on the release, traders can act on the market properly.
Trading currency can give great advantages but there are some factors such as Forex News Releases that can affect the trades. The forex market is a move based on news and the economic data is very important to be considered in short-term movements.
In the currency market, this is especially true. It not only responds to an economic number of the US but also from around the world.
Trading based on such as Forex News Releases can be beneficial as traders can stay informed and will not be carelessly taking decisions. Based on the release, traders can act on the market properly.
At least, there are eight currencies that are mostly available for trading and are known as the major currencies. There will always be economic data scheduled for release that can be used by forex traders.
In fact, almost every weekday there is a lot of data from Forex News Releases except holidays. So, there are many chances for those who want to trade news. The following are the major currencies that are familiar most for traders.
1.EUR (euro)
2.USD (U.S dollar)
3.JPY (Japanese yen)
4.CAD (Canadian dollar)
5.CHF (Swiss franc)
6.GBP (British pound)
7.NZD (New Zealand dollar)
8.AUD (Australian dollar)
These eight currencies are derived and resulted in some liquid pairs that are tradable with Salmamarket forex broker. They are EUR/CHF, EUR/USD, CHF/JPY, AUD/USD, GBP/JPY, USDJPY.
Easily tradable currencies span the globe. With this, you can choose the economic release and currencies of your particular interest. However, the US economic release is the most dominant as it participates in 90% of all forex trading.
Trading news is not as easy as it sounds. The importance is not only the reported consensus figure but also any revisions of the previous report and the whisper numbers (unpublished and unofficial forecasts).
Some such as Forex News Releases are also important compared to others. The measure can be in terms of the importance of the release related to released data and the significance of the state that released the data at the time.
Related to trading news, the first thing you should know is what is the expected release that week. Second, know the important data. In general, the information that is important most is related to the following things.
1.Retail sales
2.Interest rate decisions
3.Trade balance
4.Unemployment
5.Manufacturing sector survey
6.Business sentiment survey
7.Consumer confidence survey
8.Industrial production
9.Inflation (producer price or consumer price)
Depending on the economic state, the important release can be relatively changed. For instance, at a certain time, unemployment can be more important compared to retail sales. Therefore, stay aware of what is currently being a focus in the market at the moment.
According to the Journal of International Finance and Money published in 2004 (a study by Richard K. Lyons and Martin D.D. Evans), the market may still react or absorb news release hours.
Although it is not always days but can be at the time after the figures are released. According to the study, the effect on returns commonly occurred on the second or first day but the effect appears to last up to the fourth day.
News is among useful analyses for forex trading that can be useful for traders in making decisions. Along with other factors, there are many things that need to be considered before executing trades.
Therefore, a licensed broker is needed to be your trading partner. With a professional broker like salmamarket, trade easily and use the best strategy like trading based on Forex News Releases.