How to Trade News Releases in Relation to Forex

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News releases are announced in all countries, at the beginning of the day, between 9-10 am, but due to different time zones, news releases from around the world, are announced at different times around the 24 hours, causing more or less volatile movements. 


Australia and Japan are the first to issue their releases at 3:00 GMT timing, when they open, they are followed by china and the far east Asian countries, at 9:30 GTM timing, London releases its news followed by European countries, by 11:00 New York wakes up, and the U.S. releases its news. These are the major news releases which have the most impact on Forex trading, and market directions.

Not all news releases are as impactful as others, some releases are expected to be released and these usually have a waiting crowd and expectations, generally the most important releases are, interest rate decisions, retail sales, inflation, unemployment, industrial production, business sentiment surveys, consumer confidence surveys, trade balance and manufacturing sector surveys. 

The importance of each depends on the current state of local and global economy, and while all these are generally important to the market, different times are more affected by different changes. 

News releases generally on a daily basis have a limited impact, and a small time range usually within the hour following the news releases things quiet, down, but in some cases hours later, the market could still be absorbing and reacting to a news release. The impact of the news release though usually draws onto the fourth day, while the impact on the order of flow starts changing on the third day onto the fourth day. 

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