News is the Fuel.
The Forex market is driven largely by world financial market and news, both of the domestic and international variety. There are a host of players on the international FX stage including businesses, hedge funds, governments, banks, consumers and of course us traders!
By now I am sure you are wondering why a self-proclaimed technical trader is blogging about the news? After all isn’t this just more fundamental mumbo-jumbo?
Well you know what they say …
NEWS IS THE FUEL BUT THE TECHNICALS ARE IN CONTROL!!
Fundamental news has a tendency to adjust the technical when the news is unexpected. Before beginning my trading session I am sure to review the up coming economic releases to view any event that has potential to provide rocket fuel to the market. Some news will move the currency pair (Non-Farm Payroll) and some are may not. To get a list of those pre-planned economic releases that have the potential for moving the Forex market look into the following links.
http://www.dailyfx.com/calendar/briefing/
http://www.forexfactory.com/index.php?page=calendar
Here are some recommended sites to get a more comprehensive fundamental view of the market.
Getting to know the impact of news events on your chosen currency will allow you to anticipate movements and plan your trades for more profitable entries.
http://www.morganstanley.com/GEFdata/digests/digests.html
This site will give you much more the Forex, but you can search the archives for the FX related article. This site has been very informative for my long term planning.
In Part 2 we will discuss how to incorporate news events into your trading plan.
Happy Trading!!
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