Moreover, it is also important to keep a tab on the recent updates, especially, the news releases that are published by the companies, which give a comprehensive idea about the trading situation that prevails at present.
The most important advantage of trading in forex is it’s round the clock functionality which makes it easier for the international traders to make their calls. Though it is a volatile market and there are chances of making losses based on the financial upheavals, these can be brought down to a considerable extent with the help of updated information about the market and the latest developments that influences trading decisions and the value of the assets which are used for trading.
Trading on the basis of News Releases
Here we are going to take a look at the importance of news releases when it comes to trading in forex. First of all, the news and latest information about the particular currencies which are traded against each other are released at specific time periods. So, if the trader is using a sophisticated trading platform, they will get updates as and when the news is official.
The currencies that you need to pay attention to while scanning the news releases include the US Dollar, Euro, Japanese Yen, British Pound, Australian Dollar, Canadian Dollar New Zealand Dollar and Swiss Franc. Based on these currencies you can decide to trade one against the other depending on how well they are doing in terms of their value. For this you need to have regular updates about the rise and fall of values of the currencies.
A Few Facts and Figures
While the news releases for the USD can be accessed from 8:30 – 10:00 EST, for trading in JPY, you need to be alert at 18:50 – 23:30 EST. Similarly, the latest updates about the other currencies are also released at specific time periods. The releases are generally based on the key economic factors in the home country of the particular currency. These factors are such that they have the capability to affect the value of the currency and hence the latest news and information about them are released as and when any changes occur. Watch out for news on interest rate decision, manufacturing sector, unemployment issues trade balance, etc.
The most important thing to keep in mind is that the effect of the news updates may last for a few hours after they are released so it is of paramount importance that the clients remain updated at all times so that they can take crucial trading decisions in a timely and accurate manner.