5 Common Questions on Forex Trading News and Analytics

Forex trading is the largest financial market in the world that allows you to trade all the currencies of the world. One of the perks of trading currencies is that the FX market is open 24 hours a day. As markets move because of news, economic data is the most vital catalyst that you need to stress on before trading in Forex.

This is where the importance of Forex trading news and analysis comes. Irrespective of whether you are a novice trader or a seasoned one, the latest FX news and market analysis can help you a lot. Do you have questions regarding this? Here we have listed down a few for you –

Which currencies should I focus on?

Generally, there are eight major currencies available for trading including U.S. dollar (USD, Euro (EUR, British pound (GBP), Japanese yen (JPY), Swiss franc (CHF), Canadian dollar (CAD), Australian dollar (AUD) and New Zealand dollar (NZD. There are also many liquid currency pairs derived from the eight major currencies – EUR/USD, USD/JPY, AUD/USD, GBP/JPY, EUR/CHF and CHF/JPY.

Besides, there is a piece of economic data slated for release that Forex traders can use to make informed traders. In fact, seven or more pieces of data are almost every weekday (except holidays) from the eight major most-followed countries. Therefore, for the ones who want to choose to trade news, there are various opportunities.

Currencies that can be easily traded span all across the globe. It means that you can handpick the currencies and economic releases to which you pay much attention to. However, as the U.S. dollar is on the “other side” of 90% of all currency trades, the U.S. economic releases tend to have a major impact on Forex markets.

What are the major releases?

When checking Forex trading news, you need to know which releases are actually expected that particular week. Then, knowing which data is important is also vital. Generally, the most crucial information relates to changes in interest rates, retail sales, unemployment, inflation, trade balance, etc.

Based on the current state of the economy, the relative importance of these releases may change. For instance, unemployment can be more important in a particular month than trade or interest rate decisions. So, you should try to know what the market is focusing on at the current moment.

How long does the effect last?

After the number released, the market can absorb or react to new releases for hours, if not days. Generally, the effect on returns occurs on the first or second day. However, the effect does seem to linger until the fourth day. On the flip, the impact on the flow of buy and sell orders is still very pronounced on the third party and is apparent on the fourth day.

How to actually trade news?

The right way to trade news is to look for a period of consolidation or uncertainty before a big number and to trade the breakout on the back of the news. It can be done on a short-term basis or over several days. You can follow either of the methods to trade the FX news.

From where to check the latest trading news?

very careful while checking the trading news because you will make your trading decisions based on that. To be on the safe side, it would be better to opt for a leading platform like Matrix Trader that offers the latest news every day. With this, you will have peace of mind and can trade effectively.

When you check Forex trading news and analysis, there are several important things to consider including knowing when reports are expected, understanding which releases are most crucial given current economic conditions, knowing how to trade based on the market situation, etc. If you don’t want to take the hassle but eager to increase your profits, then choose Matrix Trader and subscribe today.