How to Trade Using News
Fundamental analysis is things that represent the economy of a country in general. Usually this analysis is represented by news (news) that repeats periodically and is able to move the market at that time. The influence of these fundamentals is generally temporary, sometimes it can affect the macro trend in the future.
In contrast to technical analysis that utilizes the "history" of price movements, in fundamental analysis traders will actually try to "catch" opportunities that might appear accompanying news or economic data related to certain countries which of course will appear accompanying news or economic data related to certain countries which of course will affect the currency of that country. By observing and studying these economic data, it is as if traders are trying to "peek" at the possibility of the next price movement.
Economic news releases vary in the extent to which they affect the market. Economic news from the United States usually moves the market the most, as the US dollar is part of about 90% of all currency transactions.
The most important economic news releases for any country are interest rate decisions from the central bank, retail sales, inflation figures, unemployment rates and industrial production. The market's initial reaction to a news release typically lasts 30 minutes to two hours, but the broader impact can last for days. Then, how?
Traders can use sources such as forexfactory.com, the website presents economic data from several important countries that are considered to be able to move the market. However, traders should remember that it is not without risk. Traders should keep in mind that the level of price volatility increases when the news is released and it is quite difficult to predict where the price will move. For this reason, traders need a precise and safe strategy.
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