Trading Economic News: How Do You Make Money Trading Forex And Economic News

Traders Watch Economic News Coming From Key Financial Centers

This is my second article about trading economic news in forex. In the first hub I shared my specific method on how to trade news in Forex. In this one I would like to continue talking about it, but this time to concentrate on more general things which any newbie in trading has to know. I want to share experience that I have gathered through six years of trading Forex. In fact when I started trading Forex I did this by trading news releases.
Major Currencies

To begin with we have to find out which currencies are the most important in terms of economic news trading. I would single out 8 forex pairs. What are these 8 major currencies that forex traders often watch for economic news releases and how these events impact different securities.

The eight major currencies are:

1. U.S. dollar (USD)

2. British pound (GBP)

3. Euro (EUR)

4. Swiss franc (CHF)

5. Japanese yen (JPY)

6. Canadian dollar (CAD)

7. Australian dollar (AUD)

8. New Zealand dollar (NZD)
Trading economic news | non farm payrolls
Major Economic News Releases

Major pairs like eur/usd, gbp/usd, usd/cad and their crosses like eur/cad, eur/aud are very much influenced by news releases and the task of a forex trader is to capitalize upon short term price fluctuations caused by the release of key news announcements. There are quite many news announcements that cause significant moves in currencies but the most important, that any trader trading currencies should be aware of are:

1. Interest Rate Decisions by Central Banks

2. GDP

3. Balance of trade

4. Unemployment data

5. Inflation

6. Retail sales and manufacturing

7. Business Confidence

8. Consumer Confidence

Although I mentioned 8 pieces of news which I consider the most important, the first 5 are the ones that cause strong reactions after the news is announced.