How to Trade Forex on News Releases

US Dollar Trading

News release trading:

One of the most significant advantages of currency trading is that the Forex market is open 24 hours a day, five days a week (from Sunday, 5 p.m. until Friday, 4 p.m. ET). Because markets react in response to news, economic data is frequently the most significant driver of short-term changes.

This is true especially in the major currencies, that responds to news release from across the world and also economic data from the United States. This study explores when official indicators is issued, which information is most essential to Forex traders, and also how traders may respond to market-moving data.

milliva, trading, currency

Key News release:

When trading news, you must first determine which releases are scheduled that week and Secondly, it is critical to understand which data is significant. The most relevant data concerns changes in interest rates, inflation, and economic growth. It is critical to stay current with what the market is concentrating on. The relative relevance of these releases may fluctuate depending on the present status of the economy.

Interest rate decisions

Retail sales

Inflation (consumer price or producer price)


Industrial production

Business sentiment surveys

Consumer confidence surveys

Trade balance

Manufacturing sector surveys

Timing of news release:

8:30 to 10 a.m. 
6:50 to 11:30 p.m.
7 to 8:30 a.m.
2 to 4:30 a.m.
3:45 to 5 a.m.
2:45 to 4 a.m.
1:45 to 5:30 a.m.
2 to 6 a.m.
New zealandNZD
4:45 to 9 p.m.
5:30 to 7:30 p.m.
Duration of its effects:

According to a research published in the Journal of International Money and Finance (2004) by Martin D. D. Evans and Richard K. Lyons, the market may still be digesting or responding to news releases hours, if not days, after the figures are issued.

The study discovered that the influence on returns often begins on the first or second day, but it appears to last until the fourth day. On the other hand, the impact on the flow of buy and sell orders remains considerable on the third day and is noticeable on the fourth.


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