The Foreign Exchange Market
The fact that the market is open 24 hours a day, five days a week, is a huge benefit when trading Forex. Because the market is open for such a long time, it reacts quickly to breaking news from around the world. And it’s not just economic news from the United States that has an impact on trading; news from all over the world has an impact.
Economic Data Announcements
There is usually some form of economic data slated for publication, given that most brokers have at least eight significant currencies available to trade, as well as over 17 different derivatives. Traders can then utilize this information to determine the best course of action for their trades. Every day, at least seven data items are released by the eight major financial institutions. As a result, if you trade news, possibilities abound. As a result, new trading has become quite popular among traders. Let’s have a look at when the various economic news items are issued and how Forex traders might profit from the information.
Some data releases are more significant than others.
Given that the United States Dollar (USD) is on one side of trades in over 90% of major currency pairs, it’s easy to see how economic data from the United States has the greatest impact on the trading market.
If you trade news, you’ll need to keep a careful eye on the market at the times when the most critical announcements are made. The US data is released between 8.30 and 10.00 a.m. (EST), whereas Japan’s is released between 6.50 and 11.30 p.m. (EST). The UK’s is between 2:00 and 4:30 a.m. (at least, if you’re on Eastern Standard Time; for Greenwich Mean Time, add 5 hours to the listed times).
Releases of Important Data
Information such as interest rate decisions, retail sales, inflation rates, unemployment numbers, industrial production data, business sentiment surveys, consumer confidence surveys, trade balances, and manufacturing industry surveys are among the significant data releases. The significance of each of these different releases is determined by the current state of the country’s economy. You should also keep in mind that trading news does not only endure a few hours or a day. A release’s impact on the market could last several days or even a week. When trading Forex, understanding when the releases are and which ones are essential is crucial.