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How to trade forex on news releases – 3 Powerful Strategy [99.99% success]

By on January 25, 2021 0 14 Views
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How to trade forex on news releases – 3 Powerful Strategy [99.99% success]

One of the great advantages of trading currencies is that the forex market is open 24 hours a day, five days a week (from Sunday, 5 p.m. until Friday, 4 p.m. ET). Since markets move because of news, economic data is often the most important catalyst for short-term movements. This is particularly true in the currency market, which responds not only to U.S. economic numbers, but also to news from around the world. Here, we look at which economic numbers are released when, which data is most relevant to forex traders, and how traders can act on this market-moving information.

Which Currencies Should Be Your Focus?
With at least eight major currencies available for trading at most currency brokers, there is always a piece of economic data slated for release that forex traders can use to make informed trades. In fact, seven or more pieces of data are released almost each weekday (except holidays) from the eight major most-followed countries. So for those who choose to trade news, there are plenty of opportunities. The eight major currencies are familiar to most traders:

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)

And there are many liquid currency pairs derived from the eight major currencies:

1. EUR/USD
2. USD/JPY
3. AUD/USD
4. GBP/JPY
5. EUR/CHF
6. CHF/JPY

Currencies that can be easily traded span the 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 forex markets.

KEY TAKEAWAYS

Economic data tends to be one of the most important catalysts for short-term movements in the forex market.

Since the dollar is one side of many currency pairs, U.S. economic releases tend to have the most pronounced impact.

The most common way to trade forex on news is to look for a period of consolidation ahead of a big number and trade the breakout on the back of the number.

A variety of exotic options are available for traders who want to capture a breakout move, but with less volatility than trading the currency pair itself.

#forexnews #forexstrategy

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