Forex News Trading Strategies


The of news on the forex market can vary in duration, depending on the significance of the news and its implications for the economy. GDPmeasures the total value of goods and services produced in an economy. Strong GDP data can indicate a growing economy, which can lead to currency appreciation.


However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is financial, investment, legal, tax or other advice and no reliance should be placed on it. The time frame you choose to monitor your trades daily depends on the first two steps of this plan.

How to trade Forex on news

The economic indicators regularly used areinterest rates,inflation,confidencenumbers, andemploymentnumbers. Even though grid trading doesn’t require immediate action, however, it still demands careful oversight. On top of that risk, traders must also manage the inherent costs of keeping multiple positions open.

  • The USD, GBP, CAD, AUD, JPY, and CHF are some of the most common currency pairings to trade.
  • The suggested setting and recommended levels to put pending orders are nothing more than a recommendation.
  • Before we proceed to discussing the most popular Forex trading strategies, it’s important that we understand the best methods of choosing a trading strategy.
  • Thecalendaris very accurate and isusually customizableaccording the data and their importance.
  • With that said, it’s important to understand that history doesn’t always repeat itself.

Gross Domestic Product measures the dollar value of all goods and services produced within a country. What you would see on your charts would be a huge dollar rally across the board because the big market players didn’t expect this to happen. With a consensus at 9.0%, it means that all the big market players are anticipating a weaker U.S. economy, and as a result, a weaker dollar. Our gain and loss percentage calculator quickly tells you the percentage of your account balance that you have won or lost.

What is forex day trading?

You want to know in advance where the bulls and bears might the market and potential price levels to avoid during news announcements, like a professional news trader. Also, you should already know where to set your stop-loss orders and take-profit levels. In particular, news trading requires expert fundamental analysis skills, as you will need to understand how certain economic announcements can affect your positions and the wider financial market. Recent examples include the Greek debt crisis and China market turmoil.


You don’t have any bias as to whether the will go up or down, hence the name non-directional bias. Move the surviving position’s stop-loss to breakeven once the paper profit reaches original stop-loss distance. A broker with low spreads and high-quality trade execution is required. Down if negative numbers are released in the US, no change otherwise. LiteFinance includes a professional trader blog, analytics, and a complex educational block.

Learn how to read the economic calendar

To hedge, go both long and short at market price 30 min before the news release. Your stop loss order should be placed a few pips below the range low when buying, conversely, a stop loss order should be placed a few pips above the range high when selling. Stay on top of upcoming market-moving events with our customisable economic calendar.

trade forex

Spotting a false signal and confirming the validity of your analysis can be tricky—especially when time is of the essence. For these reasons, day trading typically requires more experience and familiarity with the market. To be successful, day traders must also practice effective money management and be ready to respond swiftly if price moves against them. Because swing trading demands quick action and close market oversight, it’s typically favored by day traders who are available to monitor changes in price momentum minute to minute. Despite being classified as a short-term trading strategy, this approach demands that traders hold their position overnight and may keep them in a trade for a few weeks at a time. Finally, trading data releases is one thing but these days you can also trade based on market news releases and major currencies forecasts from market analysts.

Depending on the difference between the actual release and the forecast number, we can witness some spectacular moves in a short period of time. This would also happen if the actual report released an unemployment rate of 10.0%. Now that the report is released and it says something totally different from what they had anticipated, they are all trying to adjust their positions as fast as possible. They will go ahead and start selling off their dollars for other currencies before the actual number is released.

  • The economic calendar includes information about major economic events, as well as political news and the impact they have on the Forex market.
  • News here refers to macroeconomic statistics and monetary policy updates that affect currency rates.
  • Unlike scalpers, who are looking to stay in markets for a few minutes, day traders usually stay active over the day monitoring and managing opened trades.

This offers traders an opportunity to open positions at the very start of a new trend. Paying attention to when trading announcements are due can mean that you end up placing a carefully planned trade just before a major event happens, which instantly triggers your stop-loss. It may be more opportune to wait to open new positions after news events have taken place, and then see if the reason for the trade is still valid.

Trading in this market involves buying and selling world currencies, taking profit from the exchange rates difference. FX trading can yield high profits but is also a very risky endeavor. Sign up with AvaTrade for a free demo account or a live account and start trading the news with all the right tools and resources at your fingertips. Cryptocurrencies are a relatively new asset class, and they can be impacted by diverse news and events. The most impactful ones include regulation, adoption and technology news.


If you are able to be in cash by the end of the day, you might earn interest with certain places. The USD, GBP, CAD, AUD, JPY, and CHF are some of the most common currency pairings to trade. The moments when the main international forex markets cross are the prime periods to trade these currencies. Add a limit order to both long and short positions 30 seconds before the news release.

Trading Forex Market – 25/01/2023 – FXStreet

Trading Forex Market – 25/01/2023.

Posted: Wed, 25 Jan 2023 08:00:00 GMT [source]

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