The impact of News on FOREX

News are the foundation stone of the fundamental analysis. Any market is influenced, in one way or another, by news and other economic indicators. The forex is the most allergic to news, especially for short term movements, due to the fact it is open almost 24 hours a day (from 5pm EST on Sunday until 4pm EST Friday). Traders should pay attention to news from all over the globe (the market responds not only to US news). With no less than eight major currencies and approximately 17 derivatives, there is always a news release in any given time, which can be used to predict a certain movements in a specific currency. Each day there are at least seven important information releases that affect the eight major currencies (USD, EUR, GBP, JPY, CHF, CAD, AUC and NZD) and all the currency combinations you can assemble with them, a fact which creates a lot of opportunities for the forex news-trader.


It is important for any fundamental trader to know which of the news releases are the most significant to the forex user and the timing of their release (time is a huge factor in trading). The currency combinations are so wide that they cover the entire globe; a trader can choose his investment and pay attention to that particular currency economic news. Take my advice and always pay attention to the US economic - 90% of forex trades involve the USD.


For conclusion, after choosing the pairs you’re about to trade, make sure to find out which news and economic reports has an impact on your investment. Trading news is not as simple as it may sound; the forex market reacts to other factors as well and in some cases they can overcome the news' influence.