Tradeable Reports With ForexGen

Trading news requires considerable patience. By standing away from the most releases, you have to know which releases are actually expected that week, You do not have to pay attention to every single report just pick and choose.
Here we will discuss on U.S. news and economic reports because the U.S. dollar is involved in a majority of currency trades, Also you will find that the top nine U.S. releases led to a 56 pip reaction in the EUR/USD in the first 20 minutes following the release. Depending on the nature of the release, the movement could actually range in size from 33 to 124 pips. therefore it tends to have the most significant impact on the currency markets.

Here is a list of some of the top U.S. market moving reports:

1. Interest rate decision
2. Manufacturing sector surveys
3. Retail sales
4. Inflation (Consumer Price Index and Producer Price Index)
5. Unemployment
6. Industrial production
7. Business sentiment surveys
8. Consumer confidence surveys
9. Trade balance

Every country has a set of major reports similar to this list. And since these reports are scheduled in advance you will find it in a plenty of websites on the Internet with scheduled rankings.

Things to Know When Trading News Reports

Now that we know exactly when you can trade the news, there are a few concepts you should know before starting your news trade.

• The actual news report is essential to the long-term movement of a currency pair, in the short-term the difference between the market expectations and the release of the news is what causes the breakout opportunities. This means economic reports that come out as the market expected generally do not affect the market reaction.
• The quieter the market is before releasing a news report, the more the market depends on a significant move. In a quiet market, a small number of traders are trading, possibly waiting for a catalyst as a news report, When this “catalyst” takes place all of these traders who are waiting jump in at the same time causing a strong movement in the market. So, the more traders waiting, the larger movement will take place after a news report.
• Depending on the amount of deviation of the actual to the forecasted number and the significance of the economic report, news breakout opportunities are generally last for only a few minutes or even a few seconds. Trading news releases may be so helpful for scalpers and normal day traders.