Anyone that has ever traded the forex is well aware of the impact news can have on the market. In just a few seconds, the market can move hundreds of pips. If your money is in the right direction, this can result in earning 10%, 25%, 50%, or even more. However, if you are trading against the market, you can have your account wiped out in no time.
Here is some basic information that will help you understand the forex news a little better.
If you want to trade the news, you should focus on the more popular currency pairs - EUR/USD, USD/JPY, EUR/JPY, GBP/JPY, and GBP/USD.
Every country has certain economic reports that will greatly affect their currency. These reports reflect the health and help predict the future state of the nation's economy. Here is a list of 5 of the most powerful economic releases from the United States:
1. Employment growth
2. Interest rates
3. Trade balance
4. Gross domestic product
5. Retail sales
Every country has a list of these economic reports. They are scheduled weeks and even months in advance, so you can be fully prepared to trade each of these reports.
For each of these economic releases, economists try to predict the results of these reports before they are released. The largest movements in the forex will happen if the results are radically different from the predictions. Thankfully, the predictions by these economists are also open to all.
Sometimes the market can give you a clue to how the news will turn out. If the market is really quiet (i.e. the price doesn't move much) hours and minutes leading up to the economic release, then you can be quite certain that the resulting move will be fairly dramatic.
| Christopher has been writing articles for more than 2 years. Come visit his latest website that discusses products such as beds with storage and twin beds with storage that anyone with limited space can use. |
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