Forex daily economic news updates move the market, sometimes radically. Economic news of different countries include reports on employment, productivity, consumer sentiment, manufacturing and trade balances. This is either good for the country and increases the value of their currency or indicates a problem and causes the currency value to go down. Investors in this market know when this is happening and adjust their plans accordingly.
These news releases are scheduled by each country as their government makes a formal announcement on the economic health of that country. Lists of these times are published many places. Investors know exactly when one of these events is going to happen in the currencies they are invested in. Some investors are content to ride out any market change and reaction; other investors exit the market ahead of time and do not reinvest for a certain period of time afterwards.
Forex daily economic news updates can cause dramatic movements. Sometimes this movement starts ahead of the announcement based on rumors or hopes. Many times the movement goes one way then corrects itself and moves in the opposite direction. Some investors have found themselves stopped out of the market at a loss only to watch this market move in the right direction; had they been able to stay in, they would have made a very profitable trade.
Experienced traders sometimes use a limit order to enter the market if the price is right, and a stop loss order to exit the market if the market moves against them. These orders may not work in a fast moving market. The market may gap passed either one causing the order to fail. This market may be moving so fast the order is not filled anywhere near where it was placed. Either way, the investor is not in control of the trade and is at the mercy of the market. A profitable trade at one price may become a losing trade at a different price. Failing to fill a stop loss order or filling it at a much different price drastically reduces an investment account.
Economic news is one of the major movers of the markets and is often looked forward to enthusiastically as an opportunity to make money. Forex daily economic news updates are an important market strategy for investors, either as an alert to watch the market and the market’s reaction or as a warning to exit the market for a period of time.
Do you want to really make profits with forex? Make sure you get fresh updates ahead of everybody else here: Forex News
Also, you need to know how to read and analyze the trading market well. Learn Currency Trading News