In this era where information can be a very strong and strategic asset, both for individuals and companies, and information is the same as money, especially for a trader, closing himself off from news can kill himself. The Forex market is very sensitive to the news flow associated with it, and the movement of major short-term currencies is almost always preceded by changes in the fundamental outlook influenced by the news. Traders around the world make a living by processing and translating information into money. Financial news service providers know how important news is to Forex market players, and charge a premium for that. It is not uncommon to get hundreds of headlines that are potentially relevant to Forex trading from news service providers on an average trading day.
Traders, especially those who trade the Forex market, need the latest news updates to facilitate their trading decisions which must be made in a flash. They mostly use online financial news services such as Dow Jones Newswires, Bloomberg and Reuters, which display the latest financial news on their computer monitors. Because the speed of news dissemination is very important for traders, many choose this online instant news service rather than relying on daily newspapers such as the Wall Street Journal or Financial Times which carry stale news that is of little use to traders.
The main reason why news is so important to Forex trading is that each new piece of information can potentially alter the trader’s perceptions of the current …Read more