Forex news change all the time and lots of factors determine the ups and downs. Following forex news and knowing how to act in the case of new developments will make it much easier for you to earn a consistent income through trading activities.
Certain types of news have a much more significant impact on the forex market than others. The announcement of new central bank decisions is obviously one of the most crucial developments to be mindful of.
Usually, central banks around the world make decisions about interest rates on a monthly basis. An increase in rate will typically increase the value of the currency and if no change takes place, the value of the currency will be dependent on other economic developments.
Other types of data to remain on the lookout for include GDP announcements, data about the annual inflation and the unemployment rate of a particular country of interest. Federal Open Market Committee (FOMC) meetings in the US can also have an impact on forex trading. The committee meets on a monthly basis to set rates, assess the effectiveness of monetary policies and analyze other financial factors of relevance.
Knowing how to trade after a news release is obviously tremendously important. The currencies you can trade come from just about any country, but you may want to focus your attention on a few key options and pairings. Once you narrow it down, you’ll know what economic developments and news release to monitor.
According to studies, the market responds to news releases within the first few hours of the announcement. Depending on the event and its gravity, it could continue affecting currency values for days.
Depending on the specifics of the announcement, you should enter either into trade or exit. Trading based on news releases, however, is much more difficult than it may initially seem to be.
If you’re just getting started with forex trading, you probably lack the experience and the insight to analyze forex news and predict currency price fluctuations. This is the main reason why I created TradingSig.com – a gratis live signal service that makes it much easier for beginners to start on the right foot.
The live signals service tracks the rapid fluctuations in market trends. You’ll know when the time is right to make a move because you’ll get all of the essential information via the TradingSig.com RSS feed.
You’ll get access to tons of essential information like buy and/or sell signals, data about previous day and overnight markets, market direction changes during day sessions, beginning and ending spots for trends and warnings about the exhaustion of market trends, among many others.
I’ve based TradingSig.com on my years of trading experience. I really hope that the knowledge I’ve accumulated will help you become a successful trader and gain the financial independence that you deserve.
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