Forex news
Forex traders need to keep abreast of news on a daily basis as events have a big impact on currency pairs.
- Forex, or FX, is the most active and liquid of all markets
- Currencies are always traded in pairs and there are a wide array of currency trading markets available
- Currency markets are among the world's largest and fastest moving markets
What is Forex?
Forex is short for ‘foreign exchange’ or trading one currency against another. Forex is the busiest and most liquid market in the world. This is partly because FX news often affects multiple currencies – and because many other events can influence Forex, such as trade news, political developments, the decisions of central banks, or the release of economic data.
With Forex trading, a currency is always quoted as a pair – for instance the pound against the dollar GBP / USD or the euro against the yen EUR / JPY.
Currency news can help your Forex trading
Look out for news from central banks that includes information on a country’s economy. For instance the Bank of England’s interest rate decision or the European Central Bank’s view on inflation. Such commentary can quickly translate into price movements in the pound or the euro.
Many announcements that influence Forex – such as interest rate decisions – are scheduled well in advance.
