How Important Listening to News is in Forex Trading

Yardney John May 28, 2016 Comments Off on How Important Listening to News is in Forex Trading
How Important Listening to News is in Forex Trading

The forex market is known to be the largest financial market in the world. This is because the world of foreign currencies deals with a lot of macroeconomics and market perception which is why anyone with the right tools, such as a forex news website can participate in forex trading.  This said, one of the greatest tools in becoming a skilled forex trader is the news.

Although it may seem too simple, news is actually one of the most helpful tools because almost all information needed in forex trading can be tracked in it. These include: economic data, current events, local news, and foreign news. All these can help traders predict and strategize their next moves because they are the main drivers of market movement.

Currencies You Should Watch Out For

The major currencies traders should always watch out for are those that have the most significant impact on the market. These are:

  1. U.S. 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)

It can be observed that all the major currencies are those of countries considered to be the most developed and economically progressive. There are other minor currencies out there, but the major currencies are preferred by most traders because they are the most dependable and lucrative.

Schedule of News Releases

Whenever traders invest in a particular currency, it important to know when various countries will release their economic data. In order to give more attention to these releases, they must know what time during the day they should watch the news more attentively. For the major currencies, this is the schedule traders must take note of:

Country Time (EST)
U.S. (USD) 8:30 – 10:00
Japan (JPY) 18:50 – 23:30
Canada (CAD) 7:00 – 8:30
U.K. (GBP) 2:00 – 4:30
Italy (EUR) 3:45 – 5:00
Germany (EUR) 2:00 – 6:00
France (EUR) 2:45 – 4:00
Switzerland (CHF) 1:45 – 5:30
New Zealand (NZD) 16:45 – 21:00
Australia (AUD) 17:30 – 19:30

Significant Information

There are so many economic releases provided by various countries, and all these in some way are useful in creating a trading strategy. Some of the most significant information traders should take note of are:

  1. GDP
  2. Employment Rate
  3. Inflation
  4. Interest Rate
  5. Market Sentiment Surveys
  6. Industrial Production

How Long Do They Last

Usually, the effect of economic releases could last for a few hours to a few days after the new release. By “effect”, this refers to the way the market reacts to the different information they’ve gathered from the news.

Watching news releases is a necessary part of forex trading, although it can get very risky. This is because immediately after news releases, a large number of traders are making their moves. Despite the forex market’s vulnerability after news releases, traders are still ensured a stable position afterward, especially with the help of this tool.

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