The Forex market is always open, from 5 pm EST on Sunday up until 4 pm EST Friday which means that the market is open 24 hours a day, and so trading currencies is available at any time and this has great advantages to it. Data of a economic kind is a catalyst for movement that are short term and is important in any of the markets. This is also very true when it comes to the currency market. Not only does it respond to the economic news of the US but also all from around the world too. Most currency brokers will trade in eight of the major currencies and also the derivatives of them and there are 17 of those. Economic data is always being slated and when it is released traders use them to make informed choices on the positions they decide to take. The amount of data that is released daily is no less than seven pieces and the major currencies of which there is eight are followed closely and also the countries too. So if you are trading news then there are lots of opportunities for you.
Looking for a period of consolidation is the most common way of trading news ahead of a number that is big and to trade the back of the number which is the breakout. This is done on a daily basis and also on a short term intricacy basis too. So imagine that the market was holding ahead of the number in October after the number in September was very weak, the number for October was due to be released in November and to the public. Before the release which was 17 hours before, the USD/EUR was kept within a 30 pip range of trading which was tight. Now for news traders, this opportunity would be great and give them the chance for a breakout trade, bearing in mind that a sharp move at any time would have been extremely high.
Don’t be fooled into thinking that trading news is easy because it most certainly is not. It isn’t just the consensus figure that is of importance but the whisper number and revisions are important too. You will find that certain releases are more important than others and the way in which you measure this is by the significance of the country and the data that they are releasing, the releases importance will be in relation to all the data that is released at the same time.