In this era where information can be an extremely powerful and strategic asset about forex traders, whether to individuals or corporations. For the especially for a trader, shutting yourself off from news can be suicidal. The Forex market is extremely sensitive to the flow of news that is related to it. Traders around the world make a living by processing and translating information into money. Financial news services providers know how important news is to the Forex market players, and charge a premium for it. It is not uncommon to get hundreds of headlines of news that are potentially relevant to Forex trading.
Forex traders news update
Forex traders, especially those who day trade the Forex market. Require the latest up-to-the-second news updates so as to facilitate their trading decisions which have to be made at lightning speed. They mostly make use of online financial newswire services such as Dow Jones Newswires, Bloomberg and Reuters, which display the latest financial news on their computer monitors. Since the speed of news dissemination is very important to traders, many opt for these online instant news services rather than depending on daily newspapers like the Wall Street Journal or the Financial Times which carry stale news that is of little use to traders.
Trader’s perceptions
The main reason why news is so important to Forex traders is that each new piece of information can potentially alter the trader’s perceptions. This future situation relating to the outlook of certain currency pairs. When people’s opinions or beliefs are changed, they tend to act on these changed perceptions. It through buying or selling actions in the Forex market. Based on the news, these traders will be preparing to cover their existing positions or to initiate new positions. A trader’s action is based on the expectation that there will be a follow-through in prices when other traders see. You can interpret the same news in a similar way that he or she has.
News is a very important catalyst of short-term price movements because of the expected impact it has on other market players. This is in a way an anticipatory reaction on the part of the trader as he or she assumes. That other traders will be affected by the news as well.
About forex market
Publicly released news is disseminated to the various newswires. Any trader with access to these wires can tap into the information given out. You can react accordingly in the Forex market. However, institutional players do get information that retail traders don’t. They get privy access to order book information in their computer systems. You also know something that others don’t through their personal contacts in the industry.
Think of it this way: The Forex market is dependent on news, for if there is no news, there would be little or negligible price movements in the market. Even if currencies may move according to the technicals sometimes. The technicals have been established previously by expectations of future news. The influence of news on currency prices is inevitable and inescapable.