Forex News Trader - How To Trade Forex Using News And Economic Releases
Some of traders are purely on forex news traders at the same time there are those forex traders who are technical traders and base their trades with the price chart. What is the meaning of forex news trading then?
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 uses any technical indicators.
Why is news trading possible?
The news that comes from economic news releases almost daily from one or many currencies affects the trade since the market is open 24 hours, 7 days a week with 8 major currency pairs available for trading and over 17 derivatives. What are the names of these 8 major currencies that has causes the forex traders to look out on its value almost everyday?
The currencies are listed below
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)
The presence of the mentioned currency pairs and their derivatives like as the USD/JPN, Euro/USD, AUD/USD and many other currencies which can easily be trade its currency and derivative pair is spreading all over the world.
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.
The forex traders directly monitor the interest rates or direction of interest rate like news on the country's trade balance(such as foreign purchases of US Treasuries), 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 surveys,manufacturing sector surveys and FOMC rate decisions.Different new releases impact upon currencies, and often lead to breakouts in volatility.Making most of the news release everyday that has unpredictable reports on currencies is your key to trading.A breakout indicator as a bollinger band or a breakout of a candlestick or a price bar is an indicator that helps easily and in earning more income. According to experts that news release can help in the movements that came from the array of 33 to 124 pips for chances of trading.In carefully looking into high probability trade setups that has taken place will eventually direct the way of a forex trader to formulate strategies that will be of aid in his quest for reaching his objective in gaining profits in trading. A solid surreal income would be of great help with the forex news trader to swiftly retort.
Article Source: FxTradingStock.com
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by: Goldie Pittsinger
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Word Count: 476
Date: Wed, 22 Dec 2010
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