Does Forex Relate to News? What Types of News Should Be Considered?
One of the popular and interesting strategies in the Forex world is trading based on economic news releases. Alongside economic news, there are also news about political events, but we will focus more on economic news.
To ensure that your news-based trades are successful and profitable, it is important to understand why economic news is significant and how traders can trade Forex based on that news.
Published economic news acts as a catalyst for short-term movements in the Forex market.
Some anticipated releases include:
🔸 US Non-Farm Payrolls (NFP)
🔸 Gross Domestic Product (GDP)
🔸 Consumer Price Index (CPI)
🔸 Federal Reserve Decisions
🔸 Purchasing Managers' Index (PMI)
Each announcement here will create significant fluctuations in the Forex market as traders will adjust their trades based on the news content.
When news is released, there are two possibilities:
(1) Price will spike and move strongly in one direction.
(2) The market will not react to the news.
Because economic news releases can bring about major changes in the Forex market, traders often encounter strong price volatility during this period. Trading opportunities with large price fluctuations can bring both high profits and high risks. That's why news traders need to carefully plan their trades to avoid significant losses. Conversely, with careful planning, they can achieve substantial profits.
All traders interested in news trading must monitor upcoming events and news through the daily Forex economic calendar.
Where can you follow the news and learn how to analyze it?
You can keep up with economic news on the following calendars: www.forexfactory.com/
To understand each type of news, you can follow Cat-Police's upcoming analysis posts in the near future!
One of the popular and interesting strategies in the Forex world is trading based on economic news releases. Alongside economic news, there are also news about political events, but we will focus more on economic news.
To ensure that your news-based trades are successful and profitable, it is important to understand why economic news is significant and how traders can trade Forex based on that news.
Published economic news acts as a catalyst for short-term movements in the Forex market.
Some anticipated releases include:
🔸 US Non-Farm Payrolls (NFP)
🔸 Gross Domestic Product (GDP)
🔸 Consumer Price Index (CPI)
🔸 Federal Reserve Decisions
🔸 Purchasing Managers' Index (PMI)
Each announcement here will create significant fluctuations in the Forex market as traders will adjust their trades based on the news content.
When news is released, there are two possibilities:
(1) Price will spike and move strongly in one direction.
(2) The market will not react to the news.
Because economic news releases can bring about major changes in the Forex market, traders often encounter strong price volatility during this period. Trading opportunities with large price fluctuations can bring both high profits and high risks. That's why news traders need to carefully plan their trades to avoid significant losses. Conversely, with careful planning, they can achieve substantial profits.
All traders interested in news trading must monitor upcoming events and news through the daily Forex economic calendar.
Where can you follow the news and learn how to analyze it?
You can keep up with economic news on the following calendars: www.forexfactory.com/
To understand each type of news, you can follow Cat-Police's upcoming analysis posts in the near future!
