There are several different strategies those can be used by forex traders: scalping, day trading, trading in the fluctuations, "carry trade" and trading on news Forex reviews and releases.
The basic idea of trading on news Forex reviews is to profit from high volatility caused by the publication of economic news. One of the advantages of currency trading is that the forex market is open 24 hours a day from 17.00 EST on Sunday until 16.00 EST on Friday. The common driver for the direction of Forex markets is interest rates. However, economic data tend to be one of the most important catalysts for short-term movements in any financial market. This is especially true in the foreign exchange market, which responds not only to U.S. economic data, but also for news Forex reviews from around the world.
Each trader, trading on the news Forex reviews, uses the economic calendar to pinpoint the date and time to various news. Usually, it happens considering at least seven blocks of data published daily on eight major currencies or countries that are most closely monitored.And also add him to friends at Forex Broker So, for those who want to trade on the news, there are many possibilities. But as a rule, as the U.S. dollar is involved in 90% of all currency transactions, U.S. economic data tend to provide the most dramatic impact on the market.
Trading on news is more difficult than it might seem at first glance. Moreover, it is important to take into account the previous figures, but the predicted values. Also note that some of the published data is more important than others, both in terms of the values of the country for which data are published, and the importance of some data in comparison with others.
When trading taking into account the news forex trader reviews, you must first determine what data is actually published in a given day. Here is a list of the most important economic data for any country:
• Decision on interest rates;
• Inflation rate (consumer or industrial prices);
• Retail sales;
• Trade balance;
• Industrial production;
• Surveys of consumer confidence;
• Surveys of business sentiment;
• Reviews of the production sector.
Two of the most important and actively-used to trade basing on the economic news Forex reviews are a U.S. non-farm payrolls sectors and FOMC decision on interest rates. Data on the payrolls of non-agricultural sector (NFP) are published in the 8:30 EST every first Friday of the month. Payrolls in non-agricultural sectors cover approximately 80% of the workers who produce the entire gross national product of the United States. This report is used to help government officials and economists determine the current state of the economy and predict future levels of economic activity.
The meeting of the Federal Monetary Policy Committee (FOMC) gathers eight times a year to identify the key interest rates. Read more articles from this author: Forex 12 Major Currency Pairs Definition Committee meeting which is closed is the subject of considerable speculation on Wall Street, as analysts are trying to suggest whether the Fed will tighten or soften monetary policy.
How to Trade on News Forex Reviews?