A few persons can deny that exchange rates should be even determined partly by supply and demand, i.e. overall intention of all traders to buy against the collective desire to sell. The difficulty is how to measure and prognosticate this relation. To question every participant in the market, of course, is not possible – but there is a common way to synthesize indirectly this information with pretty good precision – economic news. The indicators, which can be compared and the veracity of which is no doubt, enjoy the greatest confidence – that is, macroeconomic data published by government agencies.

It is worth noting that profitable trading strategies can be based on other news, for instance, important reports of the financial system, etc., but usually a significant influence on the market can still can be provided only by the data from public sources (the smaller participants have much more motives to manipulate such news in their favor, so that the market does not really believe them). Comprehending of the impact of announced news on the Forex market will be useful not only in the trade according to this strategy, but also for those who focus on the technical analysis – whatever technical figure or a signal would be pronounced, the outlet of major news can greatly affect your deal and lead to unintended looses.

One of the most important properties of the market is that it “looks forward” – i.e., not current data and indexes have influence on the price, bur predictions and expectations. Present prices always reflect some kind of “sample” of predictions, which the majority of market participants believe in – the so-called consensus. That’s why you must always remember that prices react practically exceptionally on the “surprises”, i.e. on the news that did not coincide with the consensus.

Respond to news of the Forex market can last up to several hours or even days. The result of this information appears on the first day, but can be observed up to four days. Often, nevertheless, the most sharp jumps in prices in return to important news last only for a few minutes, so for their “catch” it is necessary quick reaction and excellent “harmony” with your trading platform.

Nay the prices “shoot” (i.e., move sharply and very quickly in one direction) after the news – increasing of volatility is often seen directly prior to announcement. Such behavior may testify either that useful information was leaked in advance and someone is already using it for selfish purposes, or (more likely) about indecision among market parties about the expected rate. Anyway, this kind of unrest could easily “knock out” stops that you set prior to you can negotiate profits from the news – so you must very carefully monitor the market in the last minute before publication, as well as if possible put “prodigal” stops to protect yourself against frequent automatic closing of your positions.

Currently people are searching for additional or even primary sources of income as never. World economy is still in tough condition, and to find a well-paid job is not that easy task. And forex is one of the ways to make some money. To trade successfully one has to be aware of events on the market, so forex news is of great help here. Those who don’t know where to get forex market news can use the online network. Just type “forex news trading“, for example, in Google or other search engine and you will get many news sources to choose from.