The one who has access to information, owns the world. This is a principle formulated by Nathan Rothschield more than 200 years ago, and nowadays is one of the base success factors in trading. The traders experience, and his economic news awareness – those are two key components of profitable work for a market player. And while experience can and needs to be acquired, information is available to traders with any level of training. All you need is to understand it correctly, be able to process, and know how to utilize.
Professionals say, that it is impossible to predict the market, however you can ready yourself to it’s changes. To achieve this, you only need to follow the main economic and political events, which greatly affect the changes of sentiment in financial markets.
The dates for most events that are important to Forex are known beforehand. For example, the schedule of National bank executive meeting, where the decisions to change interest rates are made, or quarterly reports by leading banks, are usually known well a year ahead. This is why most brokerages offer special trading calendars their clients (also known as economic calendars), where dates of such events are published, all of which have a potential to significantly impact the fluctuations currency charts.
However, the most part of Forex news are daily economic and political news. Usually, such news feeds are available to traders directly in their trading terminal or in their brokers back office. Those can be: announcements of public speeches by government authorities, reports by leading corporations around the world, operational information about changes in currency quotes, military news, data for commodity markets, analyst opinions, the profitability of different trading instruments, trade recommendations, etc. Those who compile Forex news trading feeds often sort the news in order of importance, determining their potential to influence economies and national currencies. Also, traders may have access to chronologies of the changes in these indexes as well as predictions for future indications. All of this is supposed to help Forex traders minimize their risks in case of strong price fluctuations caused by news from the world of politics, finance and economics.
Of course, news feeds in the trading terminal are not the only source of Forex news for the trader. There’s a wide variety of different resources on the Internet that specialize in compiling economic calendars Forex informers, however the most acknowledged leaders in this industry are probably the Bloomberg and Dow Jones Newswires agencies. Subscribers of these largest news agencies receive data about currency markets in real time mode 24 hours a day.
Authenticity and relevance
Authenticity and relevance – those two factors should play a decisive role when choosing your source for Forex news. If you are a client of a reputable Forex brokerage, then, most probably having a trading account you will also get access to information from one of the most prestigious news agencies such as those that we have mentioned above. In addition to that, companies may provide other analytical data with reference to sources, predictions and recommendations by in house specialists, the accuracy of which can be verified practically. As for relevance, the release times for financial bulletins are also announced beforehand. However, if you are an overseas trader, keep it in mind that news releases translated to your local languages will typically appear with a delay of 20-30 minutes. Also, as we know from practice, today the market exists in such a mode, that even these minutes can cost a correct decision for a trader.