INVESTORS FOREX One of the great advantages of trading currencies is that the forex market is open 24 hours a day (from 5pm EST on Sunday until 4pm EST Friday). Economic data tends to be one of the most important catalysts for short-term movements in any market, but this is particularly true in the currency market, which responds not only to U.S. economic news, but also to news from around the world. With at least eight major currencies available for trading at most currency brokers and more than 17 derivatives of them, there is always some piece of economic data slated for release that traders can use to inform the positions they take. Generally, no less than seven pieces of data are released daily from the eight major currencies or countries that are most closely followed. So for those who choose to trade news, there are plenty of opportunities. Here we look at which economic news releases are released when, which are most relevant to forex (FX) traders, and how traders can act on this market-moving data.
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Which Currencies Should Be Your Focus?
The following are the eight major currencies:
1. U.S. dollar (USD)
2. Euro (EUR)
3. British pound (GBP)
4. Japanese yen (JPY)
5. Swiss franc (CHF)
6. Canadian dollar (CAD)
7. Australian dollar (AUD)
8. New Zealand dollar (NZD)
This is just a sample of some of the more liquid derivatives based on the currencies above:
As you can see from these lists, the currencies that we can easily trade span the entire globe. This means that you can handpick the currencies and economic releases to which you pay particular attention. But, as a general rule, since the U.S. dollar is on the “other side” of 90% of all currency trades, U.S. economic releases tend to have the most pronounced impact on the market.
Trading news is harder than it may sound. Not only is the reported consensus figure important, but so are the whisper number and the revisions. Also, some releases are more important than others; this can be measured in terms of both the significance of the country releasing the data and the importance of the release in relation to the other pieces of data being released at the same time.
EURUSD forecast Euro The currency pair EUR/USD continues to move within the framework of growth. At the moment, we should expect an attempt to test the level of 1.2050 and start falling below the level of 1.1650 as part of the development of the «Head and Shoulders» reversal model. In favor of falling quotations EUR/USD is a
GBPUSD forecast Pound Currency pair Pound Dollar GBP/USD continues to move within the rising channel. At this point, we should expect a test of the lower border of the channel and the continuation of the pound’s growth into the region above the level of 1.3690. GBPUSD forecast Pound Dollar September 21, 2017 In favor of the growth
USDJPY forecast Dollar Yen Quotes of the currency pair USD/JPY are trading within the limits of growth. At this point, we should expect a fall in the pair’s quotes to the area of the lower border of the rising channel near the level of 110.50. Whence again it is necessary to expect the continuation of the pair’s
AUDUSD forecast Forex Currency pair Australian Dollar to US Dollar AUD/USD continues to move within the framework of a bullish correction. At the moment, we should wait for the test of 0.8075 level and continue the decline of the pair in the area below the level of 0.7875. In favor of the fall of the pair, a
USDCHF forecast Dollar Franc Currency pair Dollar Franc USD/CHF continues to move within the correction. At the moment, we should expect a test of the support area near the level of 0.9545 and the continuation of growth above the level of 0.9820. USDCHF forecast Dollar Franc September 21, 2017 In favor of the growth of the Dollar/Franc