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Forex News Trader - How To Trade Forex
Using News And Economic Releases
Peter Lim
Foreign Exchange Risk Information
Forex News Trader - How To Trade Forex
Using News And Economic Releases
While many forex traders are technical traders and institute their trades based on technical indicators from a price chart, there are some traders who are basically pure forex news traders.
What is actually forex news trading?
The forex news trader is basically a forex trader who makes his decisions to trade based on news and reports
that are released daily. He does not depend on any technical indicators at all.
Why is news trading possible?
The forex market is a 24 hours market, and there are 8 major currency pairs available for trading with well over 17 derivatives, therefore allowing the economic news releases almost daily from any one or more of these currency pairs to impact on their movements.
What are these 8 major currencies that forex traders often watch for economic news releases that impact on their value?
The eight major tradeable currencies are
1. U.S. dollar (USD)
2. British pound (GBP)
3. Euro (EUR)
4. Japanese yen (JPY)
5. Australian dollar (AUD)
6. Swiss franc (CHF)
7. Canadian dollar (CAD)
8. New Zealand dollar (NZD)v
The availability of these currency pairs and their derivatives such as the USD/JPN, Euro/USD, AUD/USD and several others means that you can trade some currency or its derivative pair at any time as these currencies span the globe!v
So
for the forex trader who trades on the news, he will have his eyes and ears set on the release of economic news and data that affect currency values.
Generally, we will watch out for news regarding the interest rates or direction of interest rate such as the FOMC rate decisions, release of retail sales figures, indications of inflation which can be gauged from consumer price index or the producer price index, unemployment figures, news on industrial production, news that indicate a boost in business such
as business sentiment surveys and consumer confidence
Off to a Good Start for the Year in US; Europe Agrees on Fiscal Pact; Manufacturing Improves
Jobs report drives heavy action in Ford, General Motors options
The clouds are lifting a bit
US: Upbeat jobs report
USD Declines over Speculations of Increase in US Employment
Research: US Mint Gold Coin Sales for January - Signal Return to Fundamental Driven Demand?
Upcoming US Employment Reports Set to Move Market
Eurozone Services and Manufacturing Expand
Japan rattles the cages on the strong yen
Non farm payroll can provide trigger for Euro
Daily Majors Fundamental: EUR/USD, USD/JPY, GBP/USD, USD/CHF
Daily Crosses Fundamental: EUR/CHF, EUR/GBP, AUD/USD, USD/CAD, NZD/USD
US non-farm payroll data in focus for any additional momentum
Another ECB rate cut possible shortly; BoE might announce more QE
Services PMI, Retail Sales Report May Boost Euro
European Services improve in January, the focus returns on Greece
US: Jobless claims hover back to more normal levels
Currencies traded in narrow ranges overnight
The market bottomed during his testimony
No Greek debt-swap agreement to be reached this week, eyes to track jobs report and services data
Markets await US payrolls and outcome in Greece
CIPS Services PMI (January)
Deleveraging For Years Ahead
Is Exxon Mobil Stupid?
US traders were coming to their desks this morning
Some Things to Consider for January's NFP
Greek bondholders failure to agree continues to heighten currency market volatility
Crude fell yesterday
Dow rose 0.66%
Euro rose sharply
China to Play the Eurozone's White Knight?
EUR/USD Continues to Range Ahead of the Non-Farm Payroll
Denmark: Budget deficit set to comply with EMU requirement
Zynga options hot following Facebook IPO filing
Despite "Signs of Improvement" Bernanke Holds Near-Zero Rate Pledge
Euro gains with improved risk appetite
USD May See Consolidation Today
Greece Debt Crisis Affects the Performance of the Euro
Hawks prey on pigeons
Euro Currency Showing Strength under Pressure
surveys,manufacturing sector surveys and news on the country's trade balance(such as foreign purchases of US Treasuries).
Different new releases impact upon currencies, and often lead to breakouts in volatility. The key to trading on news is to take advantage of these movements in volatility which can last a few minutes or hours, and even days into the future.
Trading purely on news release is harder than it seems, but the task is made easier and more profitable with the use of indicators, such
as a breakout indicator as a bollinger band or a breakout of a candlestick or a price bar. Statistics have shown news release can trigger movements that range in size from 33 to 124 pips, leading to trading opportunities.
By studying into high probability trade setups that has occurred consistently with the release of historical economic data, the forex news trader can devise strategies that can allow him to extract fast profits from volatile movements arising from news releases. The potential gains can
be massive where the forex news trader can react quickly.
Are your forex trading activities bleeding your account dry? Discover how you can reverse these stunning losses with massive profits by visiting the author's blog 1Forex-Trading.blogspot.comv
We strive to provide only quality articles, so if there is a specific topic related to Foreign Exchange Risk that you would like us to cover, please contact us at any time or use our Forex Trading Blog.
And again, thank you to those contributing daily to our Foreign Exchange Risk website.
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Turnover - The total money value of all executed transactions in a given time period; volume.
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