Due to the fact that markets react to the news, economic releases often serve as the most important stimulant for short-term movements. The currency market is particularly sensitive; it responds particularly well to US news, but also the global economic data.
FOREX Most Traded Currencies
TraderXlab provides all the necessary tools and features to not only choose between the top world currencies, but also makes it easy for traders to make informed trading decisions. The most traded currencies include:
1. US 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)
As it usually goes, traders choose to trade currencies in pairs. So, what are the major FOREX pairs?
With traderXlab, you can mix and match the currency pairs of your choice to accommodate the trading strategy of your preference. However, since around 90% of traders tend to include the USD to trade against other currencies, US economic releases should be taken into account. The latest news on the US economy is available 24/7 within the traderoom.
Trading on news, as well as learning to trade the news well isn’t an elementary task. One must not underestimate the significance of the news source, reported forecast and revisions to previous reports, but also the so-called whisper numbers.
Key News Releases: Time
Trading currencies has its undeniable advantage – the FOREX market is open 24/5. Since the global exchanges are located in various time zones and the news are released accordingly, traders are advised to bookmark this page to have immediate access to this cheatsheet. If you live in a different time zone, be sure to use the time converter and never miss out on trading opportunities.
|U.S.||USD||8:30 to 10 a.m.|
|Japan||JPY||6:50 to 11:30 p.m.|
|Canada||CAD||7 to 8:30 a.m.|
|U.K.||GBP||2 to 4:30 a.m.|
|Italy||EUR||3:45 to 5 a.m.|
|Germany||EUR||2 to 6 a.m.|
|France||EUR||2:45 to 4 a.m.|
|Switzerland||CHF||1:45 to 5:30 a.m.|
|New Zealand||NZD||4:45 to 9 p.m.|
|Australia||AUD||5:30 to 7:30 p.m.|
Key News Releases: Indicators
Upon preparing to trade news, traders research and get familiar with the releases that are scheduled that week. Amidst various news updates, it is important to follow information related to changes in inflation, interest rates, economic growth and a few other factors:
1. Interest rate decisions
2. Retail sales
3. Inflation (consumer price or producer price)
5. Industrial production
6. Business sentiment surveys
7. Consumer confidence surveys
8. Trade balance
9. Manufacturing sector surveys
The relative importance of these factors may change from time to time. If you notice that the attention of the market is focused more on Interest Rate this month, watch the news related to IR a fair bit closer.
FOREX News Impact
How long after the initial news release can you trade? According to some studies, the market can take hours, and sometimes days, to absorb and react to the numbers.
As a rule, the highest effect on returns falls on the first two days, and is still prevalent until day 4. The buy and sell orders activity is still fairly energetic on the third day and is somewhat present on the fourth day.
News Based Trading Strategies
A popular news trading strategy is to identify a period of uncertainty or consolidation and to trade the breakout once the news has gone public. This strategy is suited for intraday traders, as well as those who intend to carry out their trading activity over a few days.
Volatility lies in the core of trading and can make or break the deal. Under certain circumstances, you can make the right move, but your decision may not withstand the lack of momentum the market may be experiencing.
If you’d like to test your knowledge and see how well you can determine the next big move, sign up for our risk-free Demo account to access the FOREX simulator.