Signals and indicators are a crucial part of currency trading. Forexnews is one such indicator, helping to analyze market trends and ensuring that you are making the best use of forex indicators. Trading on forexnews basically entails capitalizing on market volatility, in the event of a shock. Note that each high impact news event has a forecast, and understanding such forecasts helps to avoid costly trading errors.
Trading on Forexnews like a Pro
Forexnews trading requires you to be well versed with the currency pairs you are trading. Since there are several currencies that are actively traded on the forex market, for a better understanding, these can be classified into:
The majors: This includes key currencies like the US dollar, Euro, Japanese Yen, Sterling, Canadian Dollar and Swiss Franc.
The minors: This includes the South African Rand, Singapore Dollar and New Zealand Dollar.
The exotics: Brazilian Real, Czech Koruna and Turkish Lire are some exotics traded on the forex market.
Effective forexnews trading entails identifying and analyzing news that affects your currency pairs. Note that each currency category reacts differently to forexnews releases. The majors are largely influenced by only their own news or events affecting their major trading partners. The minors tend to have a highly speculative reaction to most news. The exotics are the most vulnerable to news and tend to react violently to high-impact news.
The question that arises here is – what is high-impact news? High impact news releases are those that have a high probability of moving the market. Trying to analyze all news releases is a futile and impossible endeavor. To trade on forexnews like a pro, focus your attention on those events that are capable of driving the forex market away from its predominant trend. Generally, events impacting the major currencies tend to influence the entire direction of forex. Note that several news releases can result in a movement of currency pips or points. However, to gain considerably on forexnews trading, watch out for news that result in substantial pip movement.