One of the significant advantages of trading currencies is that the currency market is open 24 hours a day, five weekdays a week (Sunday at 5:00 p.m. to Friday at 4:00 p.m. ET). As the markets move through the news, economic data is often the most critical catalyst for short-term moves. This is incredibly real in the forex market, which reacts not only to the United States’ financial performance but also to news from around the world. Here we look at what economic indicators are released and when, what data is most applicable to forex traders, and how investors traders can act based on this information on market movement. Still, its good to stay away from news time for beginner traders because the Safest news to trade can be dangerous without experience.
What currencies should you pay attention to?
Since at least eight major currencies are available to trade with most forex brokers, there are always economic data planned to be published that forex traders can use to make informed trades.
- Read More When is the best time to trade Forex?
In fact, almost every day of the week (excluding holidays), seven or more data is released for the top eight most closely followed countries. So there are many opportunities for those who prefer to exchange news. Most traders know the eight main currencies:
- (USD) United States dollar
- (EUR) EUR Euro
- (GBP) British pound sterling
- (JPY) Japanese Yen
- (CHF) Swiss franc
- (CAD) Canadian dollar
- (AUD) Australian dollar
- (NZD) New Zealand Dollar
And there are many liquid currency pairs can be obtained from the eight leading currencies here are a few examples
- EUR/USD, USD/JPY, AUD/USD, GBP/JPY, EUR/CHF, CHF/JPY
The currencies that can be easily traded cover the whole world. This means that you can manually select the currencies and financial issues that you pay particular attention to. But overall, since the US dollar is on the “other side” of 90% of all currency transactions, US economic data tends to have the most visible impact on currency markets.
What are the main releases?
When exchanging news, you should first know what releases are actually expected this week. Second, it is essential to understand what data is essential. Generally communicating, the most important information relates to changes in interest rates, inflation, and economic growth, such as retail sales, manufacturing, and industrial production:
- Decisions on interest rates
- Retail sales
- Inflation (consumer price or producer price)
- Industrial production
- Business opinion surveys
- Consumer surveys
- Trade balance
- Reviews of the manufacturing sector
Contributing to the current state of the economy, the relative importance of these emissions may change. For example, this month, unemployment may be more important than business decisions or decisions about interest rates. Therefore, it is essential always to be aware of what the market is focused on at the moment.
Here are a few of excellent and safe News to Trade
If the US is currently experiencing growth, it will be essential to look at the unemployment rate, retail sales, housing metrics, and other growth events.
Nonfarm payroll is the most stable and secure press release for the trade. However, the ECB and FOMC (Federal Open Market Committee) news is the time to bet on the most anticipated press releases to trade safely.
In the FOMC news, Ben Bernanke says that the right time to trade, when the market moves at its safest point, gives us the right trade option.
His speeches provide the right solution at the right time to trade, and the market goes wild when his statements are published.
The press release market focuses on inflation, the CPI (consumer price index), the PPI (producer price index), and unemployment (NFP). The safest operation is not to exchange press releases all the time. (Nonfarm payroll), ECB news, FOMC news.