In order to read news events, you should familiarise yourself with economic indicators, which are macroeconomic factors that have an impact on all financial markets, whether it be forex, shares or indices. With a massive range of tradable currencies, low account minimums and an impressive trading platform, FOREX.com is an excellent choice for brokers searching for a home base for their currency trading. New traders and seasoned veterans alike will love FOREX.com’s extensive education and research center that provides free, informative forex trading courses at multiple skill levels. While FOREX.com is impressive, remember that it isn’t a standard broker. Forex markets tend to respond the most to macroeconomic news – the kind of developments that reflect or impact broad economies. Generally speaking, forex traders can look at economic news to assess its impact on interest rates and monetary policy.
US stocks are in for a rough start to the trading week as Wall Street braces for a wrath of downgrad… https://finviz.com/forex.ashx Senior Market Analyst Jeffrey Halley talks about news impacting the market and the week ahead.
Which Currencies Should Be Your Focus?
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We recommend that you seek independent advice and ensure you fully understand the risks Forex news involved before trading. Of course, there are drawbacks of news-based trading as well.
Trade The News In Forex
Every journey starts with a single step and this is true of trend reversals as well. An economic announcement is rarely enough to quickly change a medium-term trend, but how the market reacts to surprises can give the first clue that sentiment is starting to shift. This offers traders an opportunity to open positions at the very start of a new trend. But most Forex trends reverse at some point, and a change in the underlying economics could be the first sign of this. Read more about using fundamental analysis in the consideration of external factors as part of your news trading strategy. You can also follow live cryptocurrency prices measured against different currencies and other cryptos on our live rates tab.
- Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
- The Australian dollar has started the week in negative territory, after a brief rally late last week…
- Want to get a deeper understanding of how technical analysis and signals work?
- A strong nonfarm payroll report has paved the way for the Fed to deliver another 75 basis-point rate…
For example, if a central bank hints that rate cuts may be coming, but the currency still rises, there could be other factors in addition to the prospect of interest rate changes. If the currency does not drop on an expectation of a fall in interest rates, then positive sentiment is strong, and this could possibly indicate that it is now a buyer’s market. Either one of the levels must be breached prior to expiration in order for the option to become profitable and for https://nerdbot.com/2022/04/27/dotbig-ltd-review-first-impression-of-the-european-forex-broker/ the buyer to receive the payout. If neither barrier level is breached prior to expiration, the option expires worthless. A double one-touch option is the perfect option to trade for news releases because it is a pure non-directional breakout play. As long as the barrier level is breached—even if the price reverses course later—the payout is made. There is normally a consensus amongst leading economists about what level an economic announcement is likely to come in at.