Trading Economic Data Releases: News Trading
The biggest and most obvious part of fundamental analysis is trading economic data releases, or more simply as traders call it: News trading.
So that everyone in the market has a level playing field when it comes to market sensitive news, each economic data release has a set time and date that it must be released. This means that at this particular time EVERYONE is watching and trading that particular forex market. All this attention leads to volatile market conditions as everyone tries to outwit each other in the race to best position themselves.
There are literally hundreds of economic data releases every single day. Think about it. Every single country in the world releasing data such as unemployment, retail sales, GDP, trade balance. The list goes on forever. But just because a piece of economic data is released, doesn’t mean that it is relevant to you and your trade!
The Vantage economic calendar allows you to filter news releases by both country and expected market impact, making sure you’re only focusing on the news that is most relevant to you and your particular forex trade.
If you are trading EUR/USD, then the GDP of South Africa contracting shouldn’t really have too much of an effect on either the Euro or the US Dollar, should it? Of course not.
But on the other hand, a big and unexpected drop in the tier 1 US unemployment rate could have catastrophic effects on not only USD forex pairs, but across the entire forex market. This is because the US economy is still the biggest and weakness at the top of today’s interconnected world so easily sends shockwaves through the entire world. Do you remember the GFC?
Did you know:
“The US Non-Farm Payroll report is one of the most significant pieces of economic news on the forex calendar. NFP, as traders refer to the release, is the monthly change in the number of employed people in the US economy with farming excluded. It is a major barometer for the health of the US economy and in term the globe.”
So where can you stay up to date with the most important economic data releases?
The Vantage Forex Economic Calendar.
• Our forex economic calendar should be the first point of call for all traders starting their morning routine. As outlined above, the calendar can be fully customised and filtered to only show you the scheduled forex data releases most important to you and your trades.
Don’t be caught out by increased volatility during economic data releases. Mark them on the calendar and manage your risk accordingly.
The News Terminal.
• A new addition to the Vantage suite of trading tools**link, the News Terminal allows traders to get instant, real time access to economic data releases. Think of the News Terminal as an evolution of the forex economic calendar and your bridge between the world of institutional trading and your own trading. No longer do retail traders have to be 1 step behind the professionals when it comes to economic releases and market moving headlines.
Twitter and social media.
• Twitter is an amazing source of real time news. We share all types of market moving news every single day on @VantageFX. The morning starts with the Daily Forex Market Update while you are warned of every upcoming tier 1 news release followed by an overview of the forex market’s reaction. Don’t forget to also follow Vantage Market Analyst, @danewilliamsau!