Forex Trading Guide to Following Economic News
SADDLE RIVER, New Jersey, June 20, 2012 /PRNewswire/ –
Our Forex Trading Guide aims to help you understand the importance of staying
up-to-date with the latest financial news when trading with FX Solutions
Forex Trading Guide: Following Economic News
Forex trading provider FX Solutions [http://fxsolutions.com ] offers access to an
Economic Calendar which enables traders to keep on top of the latest developments in the
financial markets through clearly shown times, dates and locations of key events that have
the potential to affect the future price movements of the global financial markets.
Below, we answer common questions regarding the use of Economic News in trading
“Why should I follow Economic News when trading?”
You should follow Economic News when trading forex because it may offer you a clearer
insight into the developments affecting the likely demand for certain currencies and
therefore, future price movements of your chosen currency pairs.
For example, if you are trading the EUR/USD currency pair within the foreign exchange
market, you may want to know about the fundamentals of the Eurozone economy such as GDP or
jobless rates, as this could affect the likely strength or weakness of the Euro.
“How can this affect me when trading forex?”
How this can potentially influence you when trading forex is by offering you insight
into how your market may move.
Using the example above, i.e. EUR/USD, if you believe negative data is likely to come
out of Europe – you may choose to go short and sell the Euro because you believe that it
may depreciate against the US dollar as a result.
However, if you anticipate that positive news is coming out of Europe, you may decide
to go long and buy because you expect it to appreciate against the US dollar. However,
please note that positive or negative news does not necessarily mean that currencies will
move as expected-moves may be contrary to expectations due to a variety of factors.
Forex Trading Guide: Summary
To summarize, it is imperative that prior to trading forex, you fully research and
analyse all factors that could potentially affect your profit and loss.
The aim of following financial news
[http://fxsolutions.com/market-analysis/economic-calendar.aspx ] is to manage your forex
trading by understanding what is going on in the market.
Find out more through the FX Solutions website: http://www.fxsolutions.com
Forex trading involves a substantial risk of loss and is not suitable for all
About FX Solutions:
FX Solutions, LLC is a leading foreign exchange broker with a focus on advanced
trading technologies, transparency of transaction and unparalleled customer service. FX
Solutions serves retail clients institutional trading partners and introducing brokers in
over 100 countries.
For more information, please visit http://www.fxsolutions.com
SOURCE FX Solutions