How to Trade Forex News?
In the Forex market, all strategies based on the reactions of traders to macroeconomic events happening in the world right now are called trading the news. To put it simply, as soon as the news comes out, a trader opens a position, the market reacts and the trader earns a profit.To get more news about
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When you trade Forex news, you need to understand that the key factor in this is not the news itself, but the reaction of other players to it. All players know about the news that is about to come out, analyze it, consider it in their forecasts and set their expectations based on it, thus permanently changing the market. Therefore, an experienced trader makes their forecast not based on the news, but on the expected changes of the quotes of the chosen assets that will follow the news release as a result of actions of other traders.
Technically, the system of trading the news is relevant for any trader, because all rate fluctuations are generally linked to the news. We see more active trading every time economic publications come out (they are released based on a specific schedule). On the other hand, the reaction of the market to economic events is almost always uneven.
So how to trade Forex news？ For example, if the British pound is showing an excellent position, the strategy in this case pushes us to choose a highly volatile pair of GBP/JPY. Why Japanese yen？ Because at the moment the screenshot was made, the Japanese exchange was closed and could not have any impact on the market.
How and what kinds of trading news do we monitor？ Here are the events to monitor first and foremost:
In order to ensure successful trading in the Forex market based on news, you need to monitor several key indicators. These include the interest rate of the central bank, inflation and unemployment, retail sales and growth of industrial output. Also business sentiment, production and consumer surveys and reports are also important.
