Friday, June 19, 2009

Using Forex Trading News

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Have you tried trading with the news?

One of the biggest advantages of trading forex is tradingnya hour, the market open 24 hours a day. Economic data has a tendency as a prime mover for the short-term movements in each market, but this is really happening in the forex market, where the response occurs not only on the news or economic data from the United States, but also news from other parts of the world.

With at least eight major currencies available in almost every broker anywhere in the world and more than 17 types of derivatifnya, there is always the economic data that will be awaited by traders to be used in deciding what position to be taken. In general, no less than seven economic data released per day from eight currencies or countries that are a benchmark of the world economy. So for those who choose to use trading news, a lot of opportunities that arise. Let's see any economic data that will be released and at the time, which is most relevant to the forex market movements, and how traders must decide what position is taken from the data driving this market.

The currency which should be your focus? Definitive eighth world currency known as the Majors, and they 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)

Currency pair over a combination of liquidity usually have above average, and have things that make a big opportunity.

Currency can easily make transactions around the world. This means you can choose the currency pair which you akan transaction data and a state economy which should be the focus. But as a general guide, because the U.S. Dollar is a pair of other currencies, with the percentage of approximately 90% of all currency trading, economic data released with the United States tend to be the most influential movements of the market.

Trading with the news is actually more difficult than sound. Not only because a number of consensus or agreement of the market is an important figure, but the input and revision number is also an important figure. And also, some kind of data is more important than the other data, this can be measured from the significance of the released data and interest rate data in conjunction with other data released at the same time.

When economic data will be released? Here is a list of the most often used for important economic data releases. But there is also time that must be a concern if you are trading with the news.

Country Currency Date
United States USD = 19:30 - 22:00
Japan = JPY 05.50 - 10:30
Canada CAD = 18.00 - 19:30
UK GBP = 13.00 - 15:30
Italy EUR = 14:45 - 16:00
Germany = EUR 13.00 - 17:00
France EUR = 13:45 - 15:00
Switzerland CHF = 12:45 - 16:30
New Zealand NZD = 03.45 - 08.00
Australia AUD = 04.30 - 06.30

When you want to trade with the news as a reference, first you must know is the release schedule and what is expected from the data. A lot of information available about the economic data release schedule, it may be that you have to do is a bit of googling. The second, you should also know where the data have an important role. And probably the most important figure is a consensus it. Figure consensus is usually used as benchmark data is in line with market expectations or not. Generally, if the consensus data was successful, the market will be bullish move, and if the data appeared to be consensus usually the market will have a bearish trend.

In general, the following is the data-the most important economic data from a country:
1. Interest rate decision
2. Retail sales
3. Inflation, both consumer price and producer price index
4. Unemployment
5. Industrial production
6. Business sentiment survey
7. Level of consumer trust survey
8. Balance of trade
9. Manufacturing sector survey

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Comments :

2 comments to “Using Forex Trading News”

Stop Dreaming said...
on 

Thanks for sharing about forex news.

Blogger said...
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eToro is the #1 forex trading platform for beginner and advanced traders.

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