All profitable traders know this. News events are extremely important tools with Forex trading. Having the right information about Forex trading news can make or break you as a Forex trader.
News is a fundamental aspect of trading that requires your attention. Specific news releases have instant effects on currency pair pricing and trading volumes. Basically, news events can drive high volatility.
This is not restricted to just the US dollar. It’s important to know about news events that will impact the Canadian dollars, the British Pound, the Euro and other major currencies. You need to know what news events from each of these counties that will create high volatility.
There are very specific reports that you need to watch. Forex trading is best done by watching 5 news events. This news consists of economic reports that currency traders watch diligently. Experienced Forex traders track them very closely.
List of Forex Trading News Releases
1) Interest rate adjustments either up or down
2) Unemployment rates
3) Importing/Exporting reports
4) CPI – Consumer Price Index
5) Sales in the retail sector
Out of all of these, a countries unemployment rates have the most serious impacts on its currency value. When this type of information is released, you will see an immediate swing in price for any currency pairs that are connected to that specific country. For more details please visit these sites:- crestreports.com
Not only will the announcement of really good or really bad unemployment rates cause volatility spikes, unanticipated rates will cause even more violent swings in prices. For example, if the US was expected to have a rate of 4.5% and it turns out to be 6.5%, look out! Price will go crazy.
The 2nd most important of the 5 listed is interest rates. They have a very strong impact to a countries currency. Foreign investors like higher interest rates. So, when interest rates go up, a countries currency gets stronger as people turn to it for an investment in the hopes of capturing better returns on their savings.
Forex trading news knowledge will save your trades. This is one of a few key things you need in order to success in the Forex market. Do yourself a favor and get all of the key components of being a successful trader.
Hector Breton’s passion is trading by having the right tools and knowledge such as Forex trading news