Although it is always important to read the news, it is useful to know when the forex factory news will be published. .This is especially true for very influential news that can affect the global market. .such news will not only negatively affect the open position, but also cause gaps and landslides that could damage pending orders. First, the news has the greatest impact on the markets.
.so how can traders make the best use of forex factory news? A frequently used tactic is time trading. Traders look at the time frame and try to determine in which direction the currency is moving before trading. .look at the main economic events that have taken place in the markets over the last 72 hours. Once these are identified, traders can make trading decisions based on the information.
If markets are moving in a certain direction, there is generally no need to take action other than to follow the movement. ..however, if there is a lot of news indicating that a particular currency pair wants to change direction, traders need to act quickly to take advantage of the situation. .currency traders pay a lot of attention to the calendar, especially the second or third business day of each month. .This calendar dates back to the 16th century and the beginning of trading in international currencies. Although the former factory is not directly related to the current state of the markets, there are certain times of the year when history has a more significant effect on trade.
..the earliest part of the previous factory calendar year is April / May, which is generally considered the beginning of a new trading year. .In early May, a number of statements were made by central banks around the world, including the Bank of Canada, the Bank of America and the Federal Reserve. ..The Bank of Canada, for example, will announce that it will lower interest rates again and Bank of America will reduce its borrowing from the United States. .Both of these actions will have a serious impact on the Canadian dollar, which is the most traded thing during this period.
.The second half of the month, commonly known as the fall of the year, is the best time to trade the forex market. .Usually, depreciating currencies allow you to make a profit on the next trading day. .this is the time when traders have the opportunity to make a profit from losses and secure their positions by selling their assets in a forex factory. .traders also want to join other investors to buy promising currency pairs. .these investors must wait for the trading day to end in order to sell their investment.
Another important event is the announcement of interest rates by the Bank of America. When this happens, the dollar of the country’s central bank falls sharply against other currencies. .This leads to a sharp depreciation of the country’s currency. . Similar effects will be felt by other central banks around the world, and you may begin to see an increase in the stock trading price of these currencies. .increasing the value of these currencies is what traders use to make a profit.
…Many traders see the appreciation of currencies as a rise, as they expect the prices of currencies to rise again soon. However, they see this as a negative development because they believe that the devaluation of the currency will have a negative impact on the country’s economyThere are also evaluators. .If you know how forex factory news trading works, you will be able to understand which of these two ideas is true. .forex traders do not always agree with all the forecasts, so you should closely monitor the market data before deciding on your investment plans. .The foreign exchange market is very volatile at all times and you have to be very eager to follow it in order to act properly. .If the markets are up, you should expect the country’s GDP to rise for the first time since the start of the recovery period. Meanwhile, the unemployment rate will gradually decrease. Inflation should reach its highest level in the short term. .If you think these expectations are true, you should buy currency pairs that are strong in the markets