Why Forex Trading Use Fundamental Analysis?
One of the characteristics in the Forex business is a market that is open 24 hours a day, 5 days a week (starting from Monday morning at 5:00 BBWI until Saturday morning 4:00 BBWI). This is profitable for forex business, so as to respond to the events, events or the latest news in the world. Both in terms of economic, political and other sides that are able to move the market.
Economic data or the latest economic news сеndеrung become one important factor of movement in the Forex market. At least eight major currencies are available for trading as there are some economic data that traders are waiting for. This information is used to analyze the positions they will take. Generally, not seven of the data released by the day of the eight major currencies or countries that followed one of the closest influential on the market movement.
Those who choose to trade Forex using data or news, will have many opportunities. Here we see the economic news releases and most relevant to Forex, and sometimes the trader acts on the data driving this market.
These are the eight major currencies:
- Euro (EUR),
- US Dollar (USD),
- British Pound (GBP),
- Canadian Dollar (CAD),
- Swiss Franc (CHF),
- Japanese Yen (JPY),
- New Zealand Dollar (NZD),
- Australian Dollar (AUD),
and here are some соntоh of the following top-rated currencies:
- EUR / USD,
- USD / JPY,
- EUR / CHF,
- GBP / JPY,
- AUD / USD,
- CHF / JPY,
As we see from this list, the currencies we transact to reach the whole world. This is partly because they choose their own currencies and economic releases that take particular notice. But as a general rule, because the US dollar is on the “other side” of 90% of the currency trading, the US economic news release has the greatest impact on the market.
Some people think trading using news is harder than it sounds. As we once experienced, the currency market is vulnerable to short-term moves caused by the release of good economic news from the US and around the world. But there are also data that affect the medium and long term movements.
If you are successful in trading by using economic news in the Forex market, the main considerations that need to be kept in mind are knowing the expected release of news (both figures and official statements) compared to actual data and data that affect the current economic condition.
Various economic data released every day can be used by traders. Traders must choose a market that will be traded without risk reversal (reversal); do some research and stay on the economic news analyst so that it will reap the rewards.