Traders on the Foreign Exchange market, Forex market for short, can potentially make thousands of dollars based on the volatility and fluctuations of a country’s currency. To better themselves and have a leading advantage over other traders, some Forex traders and investors participate in a practice known as news trading. The risks are very high, but the potential gains can be worth thousands of dollars and many traders and investors use this technique.
The technique of news trading is quite simple. It is the trading of foreign currency immediately before or after an important economic news announcement. After such announcements, there is a high possibility that market prices will fluctuate, either for the better or worse, depending on the announcement. For example, if the U. S. Federal
The euro fell against the dollar and the yen today following the yesterday’s unprecedented rally as the market participant speculate that ECB will have to follow Fed’s money-printing trend.
The U.S. dollar is currently heading for its worst week against the single European currency since the inception of euro on the market’s prolonged reaction to the Fed’s pledge to increase dollar liquidity.
