Jump to content

Exchange Blog Cryptocurrency Blog


All Pips



How To Trade Forex On News Releases ?


Recommended Posts

One of the great advantages of trading currencies is that the forex market is open 24 hours a day (from 5pm EST on Sunday until 4pm EST Friday). Economic data tends to be one of the most important catalysts for short-term movements in any market, but this is particularly true in the currency market, which responds not only to U.S. economic news, but also to news from around the world. With at least eight major currencies available for trading at most currency brokers and more than 17 derivatives of them, there is always some piece of economic data slated for release that traders can use to inform the positions they take. Generally, no less than seven pieces of data are released daily from the eight major currencies or countries that are most closely followed. So for those who choose to trade news, there are plenty of opportunities. Here we look at which economic news releases are released when, which are most relevant to forex (FX) traders, and how traders can act on this market-moving data.

 

Which Currencies Should Be Your Focus?

The following are the eight major currencies:

1. U.S. dollar (USD)

2. Euro (EUR)

3. British pound (GBP)

4. Japanese yen (JPY)

5. Swiss franc (CHF)

6. Canadian dollar (CAD)

7. Australian dollar (AUD)

8. New Zealand dollar (NZD)

This is just a sample of some of the more liquid derivatives based on the currencies above:

1. EUR/USD

2. USD/JPY

3. AUD/USD

4. GBP/JPY

5. EUR/CHF

6. CHF/JPY

As you can see from these lists, the currencies that we can easily trade span the entire globe. This means that you can handpick the currencies and economic releases to which you pay particular attention. But, as a general rule, since the U.S. dollar is on the "other side" of 90% of all currency trades, U.S. economic releases tend to have the most pronounced impact on the market.

 

What Are the Key Releases?

When trading news, you first have to know which releases are actually expected that week. Second, it is key for you to know which data is important. Generally speaking, these are the most important economic releases for any country:

 

1. Interest rate decision

2. Retail sales

3. Inflation (consumer price or producer price)

4. Unemployment

5. Industrial production

6. Business sentiment surveys

7. Consumer confidence surveys

8. Trade balance

9. Manufacturing sector surveys

Link to comment
Share on other sites

  • 3 months later...

Thanks for this articles. I do trade news and many also trade news. Its when news is released that we get to see a real moving bullish trend and then it might drop but we will see bullish trends to trade. Now, when we see those trends, we can jump in and scalp some money and then jump out. News can be a source or indicator for the trader and we can make money during news time. 

Link to comment
Share on other sites

  • 5 months later...
  • 11 months later...

We really need to be seriously careful when it comes to trading on News since it could create a huge headache if we get it wrong. I can easily do news trading thanks to the wonderful support that I have with my broker OctaFX, it allow all technique including scalping, news trading and even hedging so if I want to do news trading I can easily do it with getting my orders placed very quickly even on the most difficult news NFP.

Link to comment
Share on other sites

Interest rate is very powerful, since i am sure that when there is a change the market will change for sure, arond 99% market will move while the others still there is some delay before it follow the news released. But NFP or other high impact news should be a news that you should trade it based on my experience, and only open a position when the result and trend are clear,

Link to comment
Share on other sites

  • 9 months later...

Thanks for the info..!! I have the experience of investing in both forex and binary options market. If you ask me – which one is better, then without a doubt binary options trading is far better and less risky than the forex trading. You can click here http://www.dailymotion.com/Products_Verified , to know more about binary options trading in-depth.

Link to comment
Share on other sites

  • 2 weeks later...

Thanks for this articles. I do trade news and many also trade news. Its when news is released that we get to see a real moving bullish trend and then it might drop but we will see bullish trends to trade. Now, when we see those trends, we can jump in and scalp some money and then jump out. News can be a source or indicator for the trader and we can make money during news time. 

First don't just jump into trade as soon after the news released, wait for a while i do recommend at least around 3-8 minutes after the news released until the market is a bit calmer than before. Also make sure the news you use as indicator is high impact and the result is clear, it should be less or more than its previous and forecast point. So for example NFP previous is 200K, and the forecast is 220K. It would be good for you to trade if the actual result is either 221K or more or 199K or less. You got me?

Link to comment
Share on other sites

  • 2 months later...

First don't just jump into trade as soon after the news released, wait for a while i do recommend at least around 3-8 minutes after the news released until the market is a bit calmer than before. Also make sure the news you use as indicator is high impact and the result is clear, it should be less or more than its previous and forecast point. So for example NFP previous is 200K, and the forecast is 220K. It would be good for you to trade if the actual result is either 221K or more or 199K or less. You got me?

Is this 100% or at least 70% right? I've been trying, in the end your way to tell fundamental analysis is logical but it is not always, be glad if you can reach 40 pips, make sure to cut it after that. Open a position in 3-8 minutes won't give any guarantee that you enter at the right market, i've been in that kind of position. After open a position during that time, i don't earn much and lose more.

Link to comment
Share on other sites

  • 2 months later...

Trading on news is not easy, but we should at least make sure we have all the required info and idea to make things work correctly. I simply follow this Economic Calendar by FreshForex and that helps me stay updated with all the happening, it really helps me with News trading and able to perform well.

 

mwz4i1.png

Link to comment
Share on other sites

  • 3 weeks later...
  • 2 months later...

It could be done by newbie but i recommend to trade at least 6 months in demo account, and make sure you follow all the news which is high impact such as interest rate or CPI or Retail Sales or Unemployment/Employment change. Follow those all and make sure to make profit from it while you trade in demo account,  Find more than one calendar site and compared it, it is better if the high impact news is visible in all calendar sites you choose.

Link to comment
Share on other sites

  • 2 years later...
  • 4 years later...

Trading forex on news releases can be profitable but is also risky due to market volatility. I usually do this as a precaution , Practice on FreshForex Demo Accounts: If you're new to news trading, practice on a demo account to hone your skills and strategies without risking real money. Use Proper Leverage in FreshForex : Be cautious with leverage, as high leverage can amplify both gains and losses. Ensure your risk management is in place. Remember, news trading can be highly unpredictable, and even with the best strategies, there are risks involved. It's crucial to approach it with caution and be prepared for potential losses.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...