One of the great advantages of trading currencies is that the forex market is open 24 hours a day from 5pm EST on Sunday until 4pm EST Friday Economic data tends to be one of the most important catalysts for short-term movements in any market, but this is particularly true in the currency market, which responds not only to U. With at least eight major currencies available for trading at most currency brokers and more than derivatives of them, there is always some piece of economic data slated for release that traders can use to inform the positions they take. Generally, no less than seven pieces of data are released daily from the eight major currencies or countries that are most closely followed. So for those who choose to trade news, there are plenty of opportunities. Here we look at which economic news releases are released forex, which are most relevant to forex FX traders, and the traders can act on this market-moving data Tutorial : Top Forex Trading Rules Which News Should Be Your Focus? News following are the eight major currencies U. This means that you can handpick the currencies affect economic releases to which you pay particular attention. But, as a general rule, since the U. Not only is the reported consensus figure important, but so are the whisper number and the revisions. Also, some releases are more important than what this can be measured in terms of both the significance of the country releasing the data and the importance of the release in relation to the other pieces of data being released at the same time When Are News Releases Issued? Figure 1 lists the approximate times EST at which the most important economic releases for each of the following countries are published. These are also the times the which you should be paying extra attention to the markets if you plan on trading news releases What Are the Key Releases? When trading news, you first news to know which releases are actually expected that week. Second, it is key for you to know which data is important. Generally speaking, these are the most important economic releases for any country Interest rate decision Retail sales Inflation consumer price affect producer price Unemployment Industrial production Business sentiment surveys Consumer confidence surveys Trade balance Manufacturing sector surveys Depending on the current state of the economy, the relative importance of these releases may change. For example, unemployment may be more important this month than trade or interest rate decisions. Therefore, it is market to keep on top of what the market is focusing on at the moment For more insight on these indicators, see Economic Indicators To Know How Long Does the Effect Last? According to a study by Martin D. Evans and Richard K. Lyons published in the Journal of International Money and Financethe market could still be absorbing or reacting to news releases hours, if not days, after they are released. The study found that the effect on returns generally occurs in the first or second day, but the impact does seem to linger until the fourth day. The impact on order flow, on the other hand, is still very pronounced on the third day and is still observable on the fourth day How Do I Actually Trade What The most common way to trade news is to look for a period of consolidation ahead of a big number and to just trade the breakout on the back of the number. This can be done on both a short-term intraday basis and a daily basis. After a weak number in September, the market was holding its breath ahead of the October number, which was to be released to the public in November. For news tradersthis would have provided a great opportunity to put on a breakout trade, forex since the likelihood of a sharp move at this time was extremely high We mentioned earlier that trading news is harder than you might think. The primary reason is volatility. This chart shows activity after the same release as the one shown in Figure 2, but on a different time frame to show how difficult trading news releases can be. On November 4,the market had expected 120,000 jobs the be added to the U. This the disappointment led to an approximately 60-pip sell-off in the dollar against the euro in the first 25 minutes after the release. One thing you should keep in mind is that, on the back of a good number, a strong move should also see a strong extension Can I Avoid Getting Hit by Volatility When Trading News? The answer to capturing a breakout in volatility without having affect face the risk of a reversal is to trade FX SPOT options. A number of different FX brokers offer a variety of exotic options Exotic options generally have barrier levels and will be profitable or unprofitable based on whether the barrier level is breached. The payout is predetermined and the premium or price of the option is based on the payout. The following are the most popular types of exotic options to use to trade news releases A double one-touch option has two barrier levels. Either one affect the levels must be breached prior to expiration in order for the option to become profitable and for the buyer to receive the payout. If neither barrier level is breached prior to expiration, the option expires worthless. A double one-touch option is the perfect option to trade for news releases because it is a pure non-directional breakout play. As long as the barrier level is breached - even if the price reverses course later - the payout is made A one-touch option only has one barrier level, which generally makes it slightly less expensive than a double one-touch option. The same criterion holds - the payout is only made if the barrier is breached prior to expiration. There are two barrier levels, but in this case, neither barrier level can be breached before expiration - otherwise the option payout is not made. If you want to trade news what in the FX market, key considerations to market in mind are knowing which releases are expected when, which ones are most important given current economic conditions and, of course, how to trade based on this market-moving data. These are also the times forex which you should be paying extra attention to the markets if you plan on trading news releases Country Currency Time EST U. S USD Japan JPY Market CAD U. K GBP Italy EUR Germany EUR France EUR Switzerland CHF New Zealand NZD Australia AUD Figure 1: Times at which various countries release important economic news What Are the Key Releases? For news tradersthis would have provided a great opportunity to put on a breakout trade, especially since the likelihood of a sharp move at this time was extremely high Figure 2: This chart illustrates the indecision of the market leading up to the October non-farm payroll numbers, which were released in early November. Note the increase in volatility that occurred once the worse forex expected news was released Source: eSignal We mentioned earlier that trading news is harder than you might think. The following are the most popular types of exotic options to use to trade news releases Double market option One-touch option Double no-touch option A double one-touch option has two barrier levels. A thorough understanding of risk is essential in options trading. So is knowing the factors that affect option price. By using economic releases in a timely way, buyers can beat the "big players" without endless chart analysis. What are the processes to trade forex options on most liquid news pairs, and what are some strategies for success? Six popular currency pairs and numerous secondary crosses offer euro traders a wide variety of short- and long-term opportunities. Learn why event-driven scalping in the currency market involves balancing fundamentals with technicals. The best times to trade the British pound are centered around economic releases at am, am, am and am U. A weekend analysis can strengthen your forex trading through preparation and planning. The best times to trade USD currency pairs are what before and after economic releases in in the U. Options are available for trading in almost every type of investment that trades in a market. 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