Last update 2020.07.31
Short term movements in the forex market are stimulated most by political news and economic data. The forex market is unique because it responds not only to U.S news but also to news from around the world.
Also, since the U.S dollar is often on one side of the major currency pairs, political news in the U.S tends to have more of an impact.
Experienced forex traders keep track of all the news releases by using one of several news aggregation sites to anticipate scheduled news events. Some of the more commonly used sites are forexfactor.com, fxstreet.com, and dailyfx.com.
All of these websites have economic calendar sections where a forex trader can research upcoming news.
With eight major currencies traded in the forex market, it is important to be aware of the political and economic releases for each county.
These releases can cover a wide range of topics. Some examples of topics that are generally most important are inflation, economic growth, interest rates, and unemployment.
Look through the various news topics on your chosen website to see which ones will be more beneficial to your trading plan. Additionally, news aggregations sites tend to rank news items based on the expected impact to a country’s currency. It helps to be prepared for the news reports as because they may impact your trading.
You don’t want to be caught in a position where the risk is higher than anticipated and you are unable to withstand the impact that has on your trading profile.
Typically, traders observe news events in the forex market by noticing whether or not the reported news causes a currency pair to breakout from its recent period of consolidation.
Once this breakout happens, traders expect a trend to continue in that same direction for a period of time. The effect of a news-driven breakout typically lasts about a week, however, this one-week move can sometimes spur a longer trend.
These breakout trades can be a short-term intraday trade or span over several days. This is good news for Wiseinvest.ai users because they have the benefit of a built-in strategy. When a news event creates a breakout pattern, Wiseinvest.ai users can watch their dashboard for alerts and signals on that currency pair.
By knowing the news that has been released Wiseinvest.ai users can be aware of which signals will be more beneficial to them.
Disclaimer: Forex and Contracts for Difference (CFDs) are complex instruments and come with a high risk of losing money due to leverage. Forex trading is not suitable for everyone. You should consider whether you understand how forex and CFDs work and whether you can afford to take the high risk of losing your money.
The forex brokerages displayed shall disclaim the overall performance of traders in their platforms. Oanda warns that 76.8% of retail forex traders lose money trading CFDs. XTB warns that 80% of retail forex traders lose money trading CFDs. The forex broker Fxcm warns that 69.66% of retail forex traders lose money trading CFDs.
The performances aforementioned are not related to Wiseinvest AI forex trading and AI forex signals system. You can check the performance of our AI forex system on our dashboard.