Each trader knows that when Forex news is released, the market sometimes becomes unruled and unpredictable, and that is why not everyone is able to trade in this period of time. Someone is expecting for a more opportune moment, someone does not prefer to trade on the news – everyone actions in his sole discretion. In our view, trading at the time when important Forex news is published is very attractive. Remarkableness of this type of trade is the opportunity to get big profit for a very short period of time. It is enough to know some of the peculiarities that characterize the market in such periods, and have the ability to think analytically, to predict the development of the situation.
How does economic news Forex impact the market?
All large organizations, except for several, always give a schedule of economic data. One of these institutions is the FRS (U.S. Federal Reserve System). A large army of analysts makes their predictions, resulting it is emerged a single system of views according to the development of the situation.
It emerges the so-called expected level, which in its confirmation will be suggested predicted beforehand, and that is why, if the news has not brought a surprise, the market will respond to it quietly. But in that case, if the news turns out to be unsuspected, i.e., will not correspond to the bold forecasts, it can lead to impetuous movement in the currency market.
In order to forecast rightly the movement of a particular currency pair at the time when the news Forex is announced, you should explore in advance what the news has a strong impact on the currency pair. For example, the publishing of data on the number of primary applications for reliefs may affect the U.S. dollar. Besides, the foreign exchange market can “burst out” during addresses of VIP persons. Such persons are the presidents, heads of departments, etc.
[spin]Analyze the behavior of the foreign exchange market in the absence of important news, and you surely will come to the conclusion that the behavior of currency pairs is projected a lot. But at the time when the news Forex is an announcement, the market may experience short-term “burst.” This “outburst” is due to the above-mentioned imbalance between the actual data that came out and the expected data. And in this moment some traders use this situation to their advantage, and it must be said, use very efficiently.
How to find effectively the time for the trade on the news?
The standard mechanism of spread of economic news looks like this: first, the information is received by the staff of the major news agencies, which then transfer the data to these agencies, and then they begin to rebroadcast news, and then other companies that bought the right to retransmit news start to relay them. That is, in fact, between the outlet of most news and the moment when it becomes available to the masses there is a certain time period.
Nowadays people are looking for additional or even primary sources of income as never. The world economy is still in tough condition, and to get a well-paid job is not that easy task. And forex is one of the ways to earn some money. To trade successfully one needs to know events on the market, so forex news is of great help here. Those who don’t know where to get fx news can use the web network. Just type “forex news trading“, for example, in Google or other search engine and you will get many news sources to choose from.