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The foreign exchange interday market can get very volatile at announcement time when US financial figures are being released. For example, the Non-farm payrole data once per month can create news spikes and volatility that sees the market move up and down 50 pips within a fifteen minute period, sometimes down or up 100 pips or more in the subsequent US session depending on the figure.
There are systems available to calculate how to do your forex trading on economic news. What I do here on this blog is take the data from one such system and publish the approximately deviations from the forecasted figures you should be looking for in order to base your trades. It should be noted that this is not financial or trading advice and it is not something I do myself.
I will also cover right now why I choose the forex broker which is available through this blog (see the rectangular graphic at the top of the menu to “start trading” with this forex broker. Or click here for who I deem the best forex broker.
The reason I choose this particular forex broker for newstime trading is that the speed of execution is faster than any other forex broker I have ever tried, either live or in demo account online currency trading. I highly recommend that you try this platform. It is slick, smooth, fast and professional. Plus they take paypal payments (paypal forex broker) and as stated the execution speed for a live account is second to none - and you can choose one click for both open and close. I have rarely if at all been requoted ever and I’ve placed 100s of trades with them. My limit and stop has been honored each time, too. Sometimes even the dealer let my trade make more profit than my limit if he could see orders coming in to drive the price up, allowing me to close my position 10-15 points ABOVE my take profit. This is a great forex broker in my experience.
At forex news time, when you want to trade on the economic news, it is going to be difficult to get filled no matter which forex broker you use and to be honest I have not found any exception to this rule. All I can say is this forex broker has fast one click execution, but it does not mean you will be filled at news. It simply isn’t possible for brokers to fill orders when the news is making the market so volatile because there will be a queue of orders and the higher value orders will take priority.
So, a system for forex trading on economic news.
Firstly, you need a good source of news calendar. I recommend you use the one from the forex forum, http://www.forexfactory.com/calendar.php because it gives a mix of both US and global forex announcements and also gives economic news breaking speeches such s Fed Chairman Bernanke, BOE speeches and Eurozone announcements as well as the regular fact and figure releases from around the world.
You could also subscribe to the retail forex traders economic news trading signals via Felix Homogratus’ website which is http://www.forexbastards.com and see what he has to say each day.
I will provide similar figures to what he provides below, without explanations as economic news FX trading reference which you can use anytime you want to simply by visiting this forex blog.
First I will give the announcement name. Then I will give you the deviation which if there is deviation of this amount from the previous figure, then it signals to trade and a number of pips you could see the market move if the signal is hit.
One more thing is that you would need a forex news signal service so that you get the announcements exactly as they happen. You can get this for FREE (free forex news signals service) via http://www.newstrike.com or you can pay for “Trade the News” - http://www.tradethenews.com
Here is the list:
You have announcement; deviation/signal; expected pip move
Non Farm Payroll (US); 50K; 50
ISM Non-manufacturing (US); 3.0; 30
UK Industrial Production; 0.3%; 30
Interest rates; 0.5%; 50
NZD Unemployment; 0.2%; 25
AUD Employment change; 20k; 35
UK trade balance; 0.5b; 50
US Retail sales; 0.5%; 30
NZD Retail sales; 0.5%; 30
UK PPI; 0.3%; 50
US trade balance: 5-6B; 40
CAD trade balance; 1B; 30
UK retail sales: 0.4%; 50
There is a few there to keep you going. I will come back and edit this post as more economic announcements come to mind.
One Comment
“when you want to trade on the economic news, it is going to be difficult to get filled no matter which forex broker you use”
yeah, this is really true - maybe that’s partly why we never had success with news traders at http://www.Forex4Investors.com and stopped promoting any of them.
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