Though the foreign exchange market has no an official center, London with its 200 dealers who are willing to do the weather on any freely convertible currency in the world is the heart and soul of Forex. Located between Asia and North America, London is a tremendous financial mediator, 35% of trading volume is accounted for London session. European session starts at 2:00 EST, it is known for its jagged movements. As in London many dealers work, setting orders, the first movement during the European session is typically spurious, as they try to identify places of accumulation of stops, support and resistance levels.

This dynamic is known as “London trick”. Dealers and traders are trying to determine how far the price will go, check out the market potential. Of course, sometimes the first movement during the London session is true, since everybody accedes it; it is a new trend that usually lasts until early U.S. session.

Since London is the biggest pool of liquidity, the spread in the course of this session compresses very much. For EUR / USD pair it can be only 1.5 pips, while for the pound 3 pips or less. The European session is an excellent opportunity for short-term trading, as in this period volatility grows, and the spread narrows.

Between 4 and 5 EST it is announced the most of the European data. Unexpected news in the British economy can cause strong movements on a graph GBP / USD. As a result of news surprises, this pair can do the movement upwards or downwards by 40 pips or more. If the news is unexpected, then the motion can be 100 points. A main lesson from the above: regardless of whether you are targeting on a technique or fundamental, you have to analyze the economic calendar and the potential risks. I’ve seen innumerable quantity of technical traders, who claimed that “the news is not significant.” These traders take positions on the news, their positions are often closed at the stop of the post-news motions, and then they observe in frustration at how the transaction is moving toward their position.

It is the best to abstain from opening the position before the news and trade after its announcement. Although, if you are willing to risk and you have a good scant for economic projections, you can earn good money in short-term opportunities that news present.

When at 7:00 EST U.S. session starts, it is very often the direction of price changes. This change is connected with a change of focus from the European market news on the U.S.

In this match the U.S. data almost always win, because it is the dollar remains the world’s reserve currency. Very often the pair EUR / USD grows to the opening of trading in the U.S. on good news on the Eurozone only in order to turn around in the opposite direction if the U.S. data would be good. These seesaws are often obscure for technical speculators, but it is important for you to understand how speculative flows influence the market.

Today people are looking for additional or even primary sources of income as never. World economy is still in tough condition, and to get a well-paid job is quite hard. And forex is one of the ways to earn some money. To trade successfully one needs to know events on the market, so live forex news is of great help here. Those who don’t know where to receive forex market news can make use of 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.