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Forex trading news
One of the most important skills of any successful trader is the ability to trade on the Forex news. Competently use information from the financial and economic news to improve the profitability of your trading transactions quotations of currencies is a very useful skill. For both beginners and experienced traders who are constantly working to improve their skills.
Regularly to work on streamlining and improving the trading strategy, many traders are engaged in a thorough analysis of the economic news calendar for the selected time period. In order to trade on Forex news to succeed, you must follow three basic rules:
• To know the exact or approximate time of publication the most important news affecting the movement of the currency pairs;
• Understand the principles of the market movement and also be able to predict the expected reaction of traders on certain macroeconomic indicators;
• Intelligently combine the results of the technical analysis and latest Forex news.
In order to know exactly what news the market is responding to the sharp growth of quotations of certain currencies and which make graphics in exchange rates fall down, you should turn to years of practical trading experience on Forex. For example, from the point of view of market reaction, important Forex news is:
• GDP and the level of industrial production in the country;
• The interest rate of refinancing of the Central banks;
• Inflation rate (monthly, quarterly, annual);
• The index of business activity in various spheres of industry;
• Official speeches of the major heads of financial institutions (WTO, IMF, ECB, fed and the like), as well as representatives of ministries of developed countries (EU, Japan, Canada, Australia, New Zealand, UK, USA, etc.)
Very rare for important Forex news came unexpectedly for all market participants. Almost always, such publications are due to natural disasters (tsunami in Japan, hurricanes in USA, etc.). Typically, economic and financial news Forex go according to plan, currency market participants are waiting for these publications and in all ways try to prepare for them. Before the news will be officially announced, analysts and experts of the currency market publish forecasts possible movement of prices of currencies. Thus, the market reaction to important financial news Forex can be as follows:
• News justified forecasts of analysts – exchange rate fluctuations are weak or irrelevant;
• Expert predictions were correct, however, not fully been taken into account the implications for the market Forex price charts of the currencies continue to move in the same direction;
• Erroneous predictions often lead to movement of currency pairs in the opposite direction.
When trading Forex news you should always take into account that maximum efficiency and profitability is achieved only when used as data of fundamental and technical analysis. That is taken into account not only the news value but also the current direction of chart movement of the currency pair.
|Category: Forex | Added by: (29.10.2017)