News/data releases for Forex traders
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In this Forex training video we discuss the importance of news and data releases. News and data releases are considered to be leading indicators for each economy. They also have the power to create huge spikes in upward and downward directions at any point throughout the day. However, one aspect you must consider is 'has this news/data release already been priced into the market'? If it has then changes in the market are going to be minor but if it has not, then you could benefit from Forex market spikes we mentioned above.
The most important news releases are considered to be from central banks. Each country, or economic area, has its own central bank. Central banks you must consider throughout your Forex trading are:
- European Central Bank (ECB) - their decisions affect all countries in the Eurozone including the UK
- Monetary Policy Committee (MPC) - their decisions affect the UK
- Bank of England (BoE) - their decisions affect the UK
- Federal Open Market Committee (FOMC) - their decisions affect every economy
You must find out who the leading individuals of every central bank are and take note when their major speeches or news/data releases are due. You can find this information in our economic calendar along with their importance status. The higher the importance, the bigger the change will be in the market.