We think that the most important thing about Forex Factory, without a doubt, is the economic calendar of news that can be used to move currencies, such as the presentation of the FED minutes, employment rates, trade balance, etc. from each country or region, such as the EU.
Forex Trading especially attracts daily traders, speculators who seek to obtain benefits within a day’s work. Some seek profit in a few minutes, some in an hour, and others in a few hours. To be successful in this way of speculating, it is essential to be well informed, since economic information from the European Central Bank, the Federal Reserve, or some of the other Central Banks can represent a spectacular movement in a short period of time, which will make our positions literally swept
In those moments the volatility of the markets increases dramatically, and there are many professional traders who prefer not to have open positions at those times, precisely because it is very difficult to know where a currency can move. Faced with a seemingly good news, the currency market may react in the opposite direction to that expected, just because it was not as good as it was speculated, and the opposite for apparently bad news.
For a novice forex day trader, even for some who have been in the markets for some time, it is very complicated to know the scope of certain news, others are obviously important, even for those who do not exclusively engage in forex, that is why it is important Be informed of what is happening in the market, that is why it is necessary to consult pages such as Forex Factory.
Forex Factory Economic Calendar
When you enter the calendar tab of Forex Factory you will be able to obtain an economic calendar in real time, you can see the date of the day, the time at which the news will be produced, the forex majors or major currencies to which it affects and together to it a yellow, orange and red symbol, depending on the impact that the news will have on the behavior of the price.
Along with these options, then you have a folder on the same line with the explanations to the news, in which you can click and get more information: how they affected those same news in the past, what exactly is the news, related articles and that They can give you a dimension of the scope of that news in the quote, etc.
Finally, we have at our disposal, a graph of how the economic data referred to in the news has historically evolved.
If we want to go to the forex charts, or currency charts, we should change the tab and go to the market option or Market, where we will have the live quotes of the main currency pairs.
Despite considering us a trader who uses technical analysis to make their decisions, it is clear that a fundamental forex calendar is essential to manage with some success in the currency market, either to operate Trading with the news, or just the opposite , to stay out when they occur, especially those that are associated with the red symbol.
News from the forex market
The forex news section, or forex news, logically contains all the news that the calendar refers to, but when they have already taken place.
Some news that may seem to only affect currencies, actually have a much greater impact.
As we write this article, job data in the US has been published, which have been weaker than expected. Conclusion to which the analysts arrive, after receiving the data and the articles that we can read in Forex Factory related to this fact, the Federal Reserve may not raise interest rates in June, since the employment report, is telling us that the economy does not grow at the expected pace and therefore and conclusion for the stock markets, if interest rates are not raised, it is possible that the current upward trend of the stock markets remains. Some conclusions that macro analysts get and that help us make our own decisions are that the strength of the dollar and the weakness of oil are not benefiting at all the growth of the American economy.
Some may think that a low-priced oil can benefit the economy, but not for an economy like the American one, in which the drilling and extraction of oil moves an industry that is quite powerful in the US. With oil at low prices, the economy and jobs suffer, because new projects do not start and those that are already underway slow down. Quite the opposite happens with an economy like the Spanish, super dependent on oil, and in which a low-priced oil is an impetus. We think you have already come to the conclusion that the economic news that you can find in Forex Factory, are not only important for the Forex market, it can also be interesting for any type of investor who wants to keep up with what is happening in the world and how the news produced can affect your portfolio.
The Forex Factory Forum
A website the size of Forex Factory cannot live without a forum in which to change impressions. Let’s say that everything previously seen, the calendar and forex news, are the perfect ingredient to create a community around an idea, but what really makes an idea strong is that it stays alive, and that is achieved with an active forum, like the one of Forex Factory, in which even the days that there is no session of Trading, we can see discussions of all parts of the world, with commentaries that take place every few minutes.
We want to summarize our impressions in the final part of the article, and give you our opinion on this page. If you want to do forex, especially if what you like is day trading, it is impossible to do without taking into account the news that occurs, because depending on their impact, they can move the market a lot, not just forex.
Although some news have an important impact on the day they occur, often that impact also translates over a long period of time, such as lower or higher interest rates of Central Banks. It is essential for any investor in the short or medium term, to have adequate and truthful information about what happens in the economy, and that is achieved by visiting sites such as Forex Factory. Our opinion is that it is a great page, essential if we want to delve into the world of forex, as it is also essential to know how macro data and fundamental data affect the price of the various assets on which we speculate.