Forex straddle news

News is simply the account of activities which aims to interest, inform or educate the reader. It is Information about current events, Common topics, news accounts which may include sports, politics, war, economics, business etc. News can be provided through many different media like electronic medium, word of mouth, postal services, through eye witnesses of an events etc. A Universal desire which is common among humans is the urge to learn and share news to satisfy human curiosity and improve their knowledge of the environment.

FOREX NEWS

As the name clearly implies, forex news is information about currency trading events around the globe. Forex market is open 24 hours a day and information about the currencies gaining strength, the factors affecting the market and the possible outcome of events is put out for traders to be in the know. Economic data is one of the most important factors for short-term movements in the currency market, economic and geo-political news is crucial to currency trading all around the world.

Forex news is an integrated part of the trading process, its main purpose is to provide traders with foreign exchange information which helps them access market conditions and ensure proper risk management before executing a transaction to maximize profit. Forex news is mostly written by forex industry veterans who throughout their successful years of trading have gathered ample knowledge of the market.  There is always some piece of economic information slated for release that traders can use to influence the positions they take during trading period, considering that there is always at least eight(8) currencies  from different countries up to be traded against each other in the forex market. In recent years, no less than seven piece news is published daily from the eight major countries that are most closely monitored. Some forex traders are often referred to as news traders because they execute their daily transactions based on the available information at hand.   So apparently, those who choose to trade news, have plenty of opportunities. It is important therefore, to be up to date with the forex news releases, when they are released, which is most relevant to a trader's parameters, and how traders use this information to their advantage.

Trading news is harder than it may sound. Not only is the reported consensus figure important, but so are the whisper number and the revisions. Also, some releases are more important than others; this can be measured in terms of both the significance of the country releasing the data and the importance of the release in relation to the other pieces of data being released at the same time.

KEY FACTORS TO LOOK OUT FOR IN FOREX NEWS

When trading, the trader must know which news is actually expected to be released that day or week. Secondly, it is paramount for the trader to know which news is important, and to do these, the trader must know the important factors to look out for in a forex news release:

1.    Interest rate decision

2.    Retail sales

3.    Inflation (consumer price or producer price)

4.    Unemployment

5.    Industrial production

6.    Business sentiment surveys

7.    Consumer confidence surveys

8.    Trade balance

9.    Manufacturing sector surveys

These key factors are likely to change depending on the current economic and geo-political state of the country, therefore it is important to keep on top of what the market is focusing on at the moment and make the beat out of it for profit maximization.

The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.

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