HOW TO TRADE FOREX ON NEWS RELEASE
TRADE FOREX ON NEWS RELEASE is really heard for all Forex trader.That we look at currencies during Forex trading Vensttia to conclude that it does not become worth stronger or weaker randomly, but based on the strengths and weaknesses of their value to investors’ confidence in the economy of the country and are measuring the economic strength of the country through the key indicators which are monitored closely during Forex trading market and economic situation of the country is of value determines its currency compared with other currencies in the forex trading market.
With time became the leading versions of the data is of paramount importance, and that after knowing their effects in changing the value of currencies and that in case of any change in economic figures, and in what later became traders of the most followers of these economic indicators, especially the five most important indicators, which are road the most because of their ability to create The momentum in the direction of price movement in the market forex trading.
Why stop the influence of News Economy at the short term?
The impact of the news stops at the short-term because the influence centered on approval versions of economists’ expectations in the market, but the real impact it is in the long term, a non-significant effect for most traders in the forex market, because the majority of traders are trading their money in the short term, and therefore do not feel the real impact for this news, and thus it can be for investors to trade based on the analysis of data and its impact on the value of the currency and the exploitation of short-term business opportunities, provided by the data within the first thirty minutes after issuing.
It is a month this data that is followed up by a lot of traders in the forex market, which traders can seize and especially in the short term, are as follows:
First, non-agricultural employment – unemployment
The unemployment rate is a measure of the strength of the economy. Where many analysts estimate indicates that the economy is stronger by knowing the number of jobs created, many of Creating jobs indicates that economic growth, as companies increase the number of its workforce to meet the demand for its products.
Second: the interest rate decision from the FOMC
Interest rate decision from the FOMC, which is part of the Federal Reserve and this percentage is imposed on the various banks to follow in loans. The interest rate is set after the Open Market Committee meeting with the regional banks and the Federal Reserve.
Third: Trade Balance
Trade Balance measures the difference between the value of goods and services produced by the country and the value of goods and services imported by the country. And there is a trade surplus in the event that the value of goods exported from the biggest imported goods, while there is a deficit when the apical imported goods the largest exporters of commodities.
Fourth: The Consumer Price Index – CPI
CPI is a key indicator used to measure inflation, as it measures a fixed basket of consumer goods prices. And negatively affect the price rise on the economy, but the central banks often responds to inflation by raising interest rates and currencies respond positively to reports of high rates of inflation.
Fifth: Retail Sales
Retail sales is a measure of all goods sold by a sample of stores. It is used to measure consumer activity and confidence whenever the top, it refers to the increased economic activity in the country.