RSS Feedsuch as the unemployment data for the us on friday which caused the dollar ot spike up as much as 2 percent in a matter of hours, what other important news dates hugely affect the forex market? (unemployment, interest rates etc)
news that affects forex trading?
Posted by admin on July 21st, 2010
Posted in Forex News 
This is so called fundamental analysis in forex trading. The two main factors are the interest rates and economical performance.
In each economic indicator, like the gross national product, foreign capital inflow or perhaps the international trade representative are the national economical performance, also decides the national currency supplies and demand.
http://www.forex2u.com/fundamental-analysis-forex.html
A couple of years ago, I found that the Singapore Yahoo site had the most straightforward Forex news (with the added bonus that it does NOT try to push a lot of scam services/otc brokers/robots/etc.):
http://sg.biz.yahoo.com/forex/news.html
It is basically just a news feed. But many articles it links to provide extensive commentary by analysts, bank traders, and the like on what they claim is moving the market.
Traders on the Foreign Exchange market, Forex market for short, can potentially make thousands of dollars based on the volatility and fluctuations of a country’s currency. To better themselves and have a leading advantage over other traders, some Forex traders and investors participate in a practice known as news trading. The risks are very high, but the potential gains can be worth thousands of dollars and many traders and investors use this technique.
The technique of news trading is quite simple. It is the trading of foreign currency immediately before or after an important economic news announcement. After such announcements, there is a high possibility that market prices will fluctuate, either for the better or worse, depending on the announcement. For example, if the U. S. Federal Reserve announces another increase of the interest rate, many traders might invest in the U.S. dollar as it is expected that its value will appreciate. The main advantage of news trading is the potential for a country’s currency to make huge gains or losses in very little time. Within minutes of an economic announcement, a country’s currency can gain or lose one hundred points almost instantly.
Non farm payroll, FOMC, interest rates, policy statements all affect forex trading. For a quick and dirty way to know what types of news may hugely affect the forex market, you can go to http://www.forexfactory.com. Red news mean these are the news you need to watch out for. Orange and yellow news are the second-tier news.
There are many news releases that affect the currency markets as speculators try to determine policy decisions and economic direction from every possible source of information. There is a calendar at http://www.forexlane.com/calendar.html with all the economic news releases fore the forex market. It also shows the level of importance and expected figures.