A quick Yahoogleing (that is, Yahoo, Google, and Bing) search for “forex + news” or “forex + data” returns about 30 million hits.
30 MILLION! That’s correct! It’s no surprise that you’ve come to obtain some education!
There is simply far too much information to try to digest, and far too many variables to confuse any inexperienced forex trader. We’ve never seen such ridiculous information saturation.
However, when it comes to making profitable transactions, information reigns supreme.
All of this information, including economic reports, a new central bank head, and interest rate changes, causes currency price movements.
Fundamentals are moved by news, and currency pairs are moved by fundamentals!
It is your job to make profitable trades, which becomes much easier when you understand why the price is moving the way it is. Successful forex traders were not born that way; they were taught or learned.
Successful forex traders do not have magical powers (except maybe Pipcrawler, who is weirder than mystical) and cannot predict the future.
What they can do is cut through the fog of forex news and data, identify what’s essential to traders right now, and make sound trading judgments.
Where to Find Market News and Market Data
Market news and statistics can be obtained from a variety of sources.
In our opinion, the internet is the clear victor since it delivers a variety of possibilities at the speed of light, immediately to your screen, with access from practically anywhere in the world.
But don’t overlook print media or the good old tube in your living room or kitchen.
Individual forex traders will be astounded by the sheer amount of currency-specific websites, services, and television content at their disposal.
The majority of them are free, however some of them may require payment. Let’s go over some of our favorites to get you started.
Traditional Financial News Source
While there are several financial news resources available, we recommend sticking with the big names.
These people provide market coverage around the clock, with daily updates on the important items that you should be aware of, such as central bank announcements, economic report releases and analysis, and so on.
Many of these major personalities also have institutional contacts who can provide viewers with explanations about current events.
- Reuters
- The Wall Street Journal
- Bloomberg
- MarketWatch.com
- CNBC
Real-time News Feed
If you want more instant access to currency market fluctuations, don’t forget about that 80-inch flat-screen TV in your bathroom!
Financial TV networks are available 24 hours a day, seven days a week to offer you with the most recent information on all of the world’s financial markets.
Bloomberg TV, Fox Business, CNBC, MSNBC, and even CNN are the top dogs in the United States. You may even include some BBC content.
Your forex trading platform is another source of real-time data.
Many forex brokers incorporate live newsfeeds right in their software to provide you with easy and fast access to currency market events and news.
Check with your broker to see if such features are available; not all brokers’ features are made equal.
Economic Calenders
Wouldn’t it be amazing if you could look at the current month and know exactly when the Fed is going to announce interest rates, what rate is expected, what rate really occurs, and what influence this shift has on the currency market? All of this is achievable with an economic calendar.
The best ones allow you to view multiple months and years, sort by currency, and set your local time zone. 3:00 p.m. where you are isn’t necessarily 3:00 p.m. where we are, so use the time zone tool to ensure you’re ready for the next calendar event!
Yes, economic events and data reports occur at a rate that most people cannot keep up with. This information has the ability to affect markets in the short term and accelerate the movement of currency pairs that you may be following.
Fortunately for you, most crucial economic news for forex traders is scheduled several months in advance.
So, which calendar do we suggest?
A quick Google search will yield a decent collection for you to look through.
Market Information Tips
Consider the timeliness of the reports you read. A lot of this has already happened, and the market has already adjusted prices to account for the report.
If the market has already moved, you may need to revise your ideas and existing plan. Keep track of how old this news is, or you’ll be “yesterday’s news.”
You must also be able to tell whether the currency news you’re reading is true or false, rumor or opinion.
Economic data rumors definitely exist, and they can occur anywhere from minutes to several hours before a scheduled data release.
Rumors influence short-term trader behavior and can sometimes have a long-term impact on market sentiment.
Institutional traders are also frequently claimed to be behind huge changes, although knowing the truth in a decentralized market like spot forex is difficult. There is never a simple way to confirm the truth.
As a forex trader, your duty is to develop a decent trading strategy and respond fast to such news concerning rumors after they’ve been proven accurate or untrue.
In this scenario, having a well-rounded risk management plan could save you money!
Finally, be aware of who is reporting the news.
Are we talking about analysts or economists here? Or are you the proprietor of the newest FX blog on the block? Perhaps a central bank analyst?
The more forex news and media you read and watch, the more financial and currency professionals you’ll be exposed to.
Are they merely expressing an opinion or stating a truth based on newly released data?
The more you understand about the “Who,” the better you will grasp how factual the news is.
Those who report the news frequently have their own agendas and skills and shortcomings.
