Forex Data Release- Three Things You Should Be Aware Of

Forex trading involves a substantial risk. The reason for such a strong belief is the leverage. The leveraged trading of forex multiplies your losses. Many factors move the whole currency market. Knowing these factors will help you become a good trader. Forex data release is one of the movers of the currency market.

High Risk Play

The data release time is one of the most volatile times experienced in the markets. A huge move withing few moments is not unheard of. Though it is an opportunity to make big bets, it is also equally risky. The stops could be missed due to high volatility forcing you to manually close the trade. Inexperienced traders can stay out of the market. This way you will save a lot of mental distraught. Novice traders should trade during forex data release but on a demo account till they get comfortable. To help you on your forex trading, you'll need a reliable broker. Check out best forex trading system to have a list of the best trading system you’ll uncover online.

Major Mover of Currency- Macroeconomic Factors

The price of financial assets change in accordance with the perception of the market to certain events. For stocks it could be anything from macro level announcement to the micro level announcement by the company. In contrast the currency market moves mainly in response to macroeconomic factors. The performance of the country will influence the movement in currency of that currency. For example forex data release from Australia will influence the Australian dollar. Euro is the common currency for many European countries. So if any data is coming out of European countries, it will have an impact on the price of Euro.

Subdued Reaction to News

Some times market don’t react to the data release as it would have normally. Market will be normal even after the release of the data. Many cite the reason of the discount already factored in by the market. The expected data by market participants is publicly known. If market has already factored in the value of the expected data and the data is indeed in line with the expectation you will often find the muted reaction from the markets. You will often see huge moves during major forex data releases like interest rate decision, non farm payroll etc. If you don’t have much experience, you should not trade during such times. Visit Dukascopy forex broker which spread is considered the lowest and they're known to be capable of maintaining respectable spread also during news releases.

Apart from above mentioned data releases, other important data releases are consumer price index, consumer confidence index, GDP, trade balances etc. The currencies you should keep your eye on for data release are USD, GBP, EURO, CHF, CAD, AUD, NZD, and JPY. There are numerous websites which give information about the upcoming forex data releases. A lot of money can be made from trading during the data release within a short span of time. But you will have to know how to interpret the market before and after the data release quickly. If you are not familiar with such volatility you can shut your computer and go out to play golf. You make money not only from trading but also from not trading sometimes. Manage risk effectively when you trade.