Forex News - How the News Effects Currencies

When trading Forex it is important to understand the most important factors affecting the currency pairs, and their movement. Although there are many hidden factors that have a slight impact on the currency pair's trend, there are certain factors that are extremely significant and powerful impact on a couple of the trend. One of the most important factor is the news.

business, political and stock market news always had a strong impact on the forex market. Unlike technical analysis, news, can be much easier to interpret, especially for new traders, because it is generally straight forward and can determine which pair will affect the title of simply looking at the country or region in the world he came from.

Long Term vs. Short-term effects

While the news trading can be very profitable, it is generally only useful when trading in the short term, such titles have a much stronger effect on short-term currency movements, but the long term. Long-term trading strategies should be based more on technical analysis rather than on fundamentals, but the news still holds the key aspects of the long-term trends. This key aspect has to do with breaks in the trend.

News & certain currency pairs

Although the pair's trend may be moving up or down, market or political news can cause a break in the trend. This holiday can be very small or very significant, depending on the title and the investor reaction to it. When trading in the long run, a quick break in the trend can not have a significant impact, except for a slight profit retreat is likely to disappear. If trading in the short term, as most traders do, it can be very useful.